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SR 10-23-2018 8A City Council Report City Council Meeting: October 23, 2018 Agenda Item: 8.A 1 of 8 To: Mayor and City Council From: Susan Cline, Director, Public Works, Office of Sustainability & the Environment Subject: Selection of Renewable Electricity Default Rate for Residential Customers Recommended Action Staff recommends that Council approve selection of the 100% renewable energy tier option as the default product for Clean Power Alliance of Southern California residential customers in Santa Monica. Executive Summary Santa Monica is embarking on a significant new approach to providing electricity to residents and businesses in our community that has long been solely dictated by Southern California Edison. The City having joined a regional “community choice aggregation” alliance, residents and businesses will soon be offered additional choices about the source and price of the electricity they use. As a member of the Clean Power Alliance of Southern California (CPA), Santa Monica is required to select a default rate option for electricity generated from renewable resources to reduce greenhouse gas emissions. The CPA is offering 100%, 50%, and 36% renewable energy rates as default product tiers for residential customers. The “default rate” is simply the choice that will go into effect unless the consumer makes a different choice. The City must select one default tier, which will apply to all residential customers starting in February 2019. At any time, customers will have the option to switch to a different energy tier or opt out of the CPA program entirely and remain a customer of Southern California Edison (SCE). Staff and the Task Force on the Environment recommend that Council select the 100% default option for residents , because decarbonizing the electricity supply is the most substantial action the City can take to reduce greenhouse gas emissions. The 100% rate would likely increase customer utility 2 of 8 bills by an estimated 7% to 9% compared to Southern California Edison’s 34% renewable energy base rate. Low-income qualified customers would be offered a discount on their rates and experience no net increase in cost compared to SCE rates. Background Community Choice Aggregation allows jurisdictions to ‘aggregate’ the electrical demand of their community and procure electricity on their behalf, ‘choosing’ where the community sources its power from as an alternative to traditional investor-owned utility (IOU) power procurement (Southern California Edison is the city’s IOU). On January 13, 2015, Council directed staff to evaluate Community Choice Aggregation (CCA) programs as a way to achieve community-wide reductions in greenhouse gas emissions from electricity generation (Attachment A). Electricity use in Santa Monica accounts for approximately 19% of total citywide greenhouse gas emissions. Reducing emissions from electricity generation through a CCA program is a key measure to reduce Santa Monica’s emissions and achieve carbon neutrality. On December 12, 2017, Council voted to join Los Angeles Community Choice Energy, since re-named the Clean Power Alliance of Southern California (Attachment B). The Clean Power Alliance of Southern California (CPA) is a community choice aggregation (CCA) program, established as a Joint Powers Authority (JPA) of 31 local governments in Los Angeles and Ventura counties, including the City of Santa Monica, working together to bring clean energy choices to communities. Councilmember McKeown was selected as Santa Monica’s Director to the CPA Board. As a CCA, the CPA can purchase clean power and sell it to customers through Southern California Edison (SCE), while SCE remains responsible for the delivery and reliability of electricity, billing, and resolving electricity service issues. CCAs are mechanisms to achieve a higher content of renewable energy, limit costs due to low overhead and no shareholder obligation and invest in local energy programs and 3 of 8 projects. SCE currently provides approximately 34% renewable energy as its base rate product. CPA is offering 36%, 50%, and 100% renewable energy rate products. Figure 1. How CCA/CPA Works In June 2018, the CPA launched service to municipal and commercial customers in unincorporated Los Angeles County and the cities of Rolling Hills Estates and South Pasadena (Phases 1 and 2). In February 2019, the CPA will phase in all residential customers in its service territory, including Santa Monica (Phase 3), and in May 2019, CPA will phase in all remaining non-residential customers in its service territory (Phase 4). Santa Monica has approximately 48,000 residential customers (Phase 3) and 8,300 commercial customers (Phase 4). As part of completing Phase 3, staff seeks Council’s direction on which default rate to select for Santa Monica’s residential customers. Past Council Actions 1/13/2015 (Attachment A) Resolution to Participate in Community Choice Aggregation Feasibility Study 12/12/2017 (Attachment B) Second Reading and Adoption of Ordinance Establishing Community Choice Aggregation 4 of 8 Through the Los Angeles Community Choice Energy (LACCE) Joint Powers Authority Pursuant to the Public Utilities Code 2/27/2018 (Attachment C) Selection of Default Phase 2 Renewable Electricity Tiers & Rates for the Clean Power Alliance of Southern California Discussion On August 16, 2018, the CPA Board of Directors (Board) adopted its rate structure in advance of the 2019 launch of Phases 3 and 4 and adopted three rate tiers of renewable content for customers: 36% renewable, 50% renewable, and 100% renewable. Agencies must now select a default tier for each of their communities. To achieve the greatest greenhouse gas emissions, staff recommends Council select the 100% default tier for its residential customers. This could reduce its greenhouse gas emissions by up to 19% (including non-residential electricity) and would result in a potential 35% reduction of emissions below 1990 levels. Alternatively,  The 50% renewable energy communitywide would reduce total emissions by approximately 10%, yielding a 27% reduction below 1990 levels (all things being equal)  The 36% renewable energy communitywide would reduce total emissions by approximately 1%, yielding effectively no reduction below 1990 levels (all things being equal) Under the 100% renewable rate, CPA staff estimate that regular customers would see a 7-9% bill increase while CARE customers would retain the same discount they would have received under SCE’s 34% renewable base rate. The 36% and 50% renewable options would offer slight discounts for regular residential customers compared to SCE’s base rate. The average residential monthly bill ranges from $55-81 per month (2016 data). Based on this average, a 7 – 9% rate increase translates into an approximate $4-8 increase on monthly utility bills, and $56-72 increase in annual utility bills. A breakdown of the estimated difference on an average residential customer’s bill is below. 5 of 8 Estimated Utility Bill Impact on 100% Renewable Energy Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Existing SCE Bill Total $81.78 $67.48 $64.50 $58.97 $55.85 $58.46 $65.96 $75.78 $66.50 $69.18 $64.59 $71.40 $800.43 CPA Bill with 7% increase CPA Bill Total* $87.50 $72.20 $69.01 $63.09 $59.76 $62.55 $70.57 $81.09 $71.15 $74.02 $69.11 $76.40 $856.47 Net Difference $5.72 $4.72 $4.51 $4.13 $3.91 $4.09 $4.62 $5.30 $4.65 $4.84 $4.52 $5.00 $56.04 CPA Bill with 9% increase CPA Bill Total* $89.14 $73.55 $70.30 $64.27 $60.88 $63.72 $71.89 $82.60 $72.48 $75.41 $70.41 $77.82 $872.47 Net Difference $7.36 $6.07 $5.80 $5.31 $5.03 $5.26 $5.94 $6.82 $5.98 $6.23 $5.81 $6.43 $72.04 *Includes CPA Generation and SCE Delivery For low-income customers, SCE offers utility bill relief known as California Alternate Rates for Energy (CARE) customers, which reduces bills by as much as 30%. The CPA Board will maintain the same relief for CARE customers at the 36% and 50% renewable rate, in addition to the discounted CPA rate. Under the 100% renewable rate, CARE customers would retain the same discount they would have received under SCE’s 34% renewable base rate. It is important to note that all customers, residential and commercial, that believe the price premium of the 100% renewable power option is an economic burden will have new choices that roughly equal or actually reduce their current electricity costs. The Board-adopted rate tier structures and estimated comparisons to SCE rates on a total bill basis are shown in the table below. 2019 Rate Comparison (Estimated) CPA Rate Option Non-CARE Cost Relative to SCE Base Rate (34% Renewable) CARE Cost Relative to SCE Base Rate (34% Renewable) 36% Renewable 1%-2% overall bill discount 30% discount from CPA rate 50% Renewable 0%-1% overall bill discount 30% discount from CPA rate 100% Renewable 7%-9% overall bill premium 30% discount from SCE rate retained (no net impact) All customers will automatically be enrolled in the default rate option chosen by the City; however, customers may opt down to a less renewable rate option or opt out of CPA 6 of 8 service and stay with SCE. To opt out or down, customers can contact CPA customer service at any time via online portal, email or phone to indicate their preference. Alternatively, customers can opt back in or up at any time if they choose to do so. In a letter to the CPA Board titled “100% Renewable Energy Default: The Clear Choice,” Michelle Ellison, Alternate Director for the City of Ojai, points out that the default rate that a city adopts is a critically important decision (Attachment D). She notes that “by setting the default at 100% renewable, CPA will get much more participation at that level than if the default were set at a lower tier. Likely only a small percentage of customers will opt down, most will remain at 100%. Likewise, if the default were set at a lower tier like 36% or 50%, that is mostly where most customers will remain. Despite best intentions, few would opt up, not because the desire is not there, it is often just because of inertia or the busyness of life.” California recently passed legislation which targets 100% clean energy by 2045. By selecting the 100% default, the City of Santa Monica has an opportunity to achieve that goal 25 years ahead of schedule. The October 2018 United Nations Intergovernmental Panel on Climate Change report paints a dire picture unless drastic changes are made in all aspects of society (Attachment E). Choosing 100% renewable energy is the most significant action the City and its citizens can take with the least amount of an inconvenience. It does not requ ire purchasing new technology or changing infrastructure. Task Force on the Environment On August 20, 2018 the Task Force on the Environment unanimously approved the recommendation that Council select the 100% default product and that staff make a concerted effort to conduct outreach. Community Outreach Until now, there has been little public awareness of the significant changes that come with community choice aggregation. Prior to and immediately after the shift from SCE 7 of 8 electrical service to CPA service for residential customers, all customers will receive four enrollment notices with their monthly utility bill (two pre-enrollment and two post- enrollment) to inform them about CPA, the changes to their utility bills and their enrollment options to ensure they can make informed consumer decisions. In addition to this noticing, staff plans to work with the CPA, local environmental organizations and other community networks such as Climate Action Santa Monica, Sustainable Works, and Community Corporation of Santa Monica to conduct community outreach and engagement via social media, the City blog and website, newsletters and press releases. CPA has provided member cities with a communications and outreach toolkit and may also support community presentations. Financial Impacts and Budget Actions An increase in electricity rates would result in a modest increase in revenue received from the User Utility Tax. During the February 27, 2018 Council meeting, staff estimated that municipal accounts on CPA service would see an increase in annual cost of approximately $43,000 due to the City choosing 100% renewable power. Given the 7- 9% premium range estimated by CPA, the potential net increase in annual utilities could reach approximately $51,000. The increases in utilities will be dispersed and absorbed in various utility budgets across the City. At this time, no budget actions are necessary. Prepared By: Garrett Wong, Senior Sustainability Analyst Approved Forwarded to Council Attachments: A. January 13, 2015 Staff Report with Resolution of CCA Feasibility Study B. December 12, 2017 Staff Report (Weblink) 8 of 8 C. February 27, 2018 Staff Report (Weblink) D. Clean Power Alliance board comments on renewable default - Michelle Ellison of Ojai E. Intergovernmental Panel on Climate Change Press Release - October 2018 F. Written Comments G. Powerpoint Presentation City Council Report 1 City Council Meeting: January 13, 2015 Agenda Item: 3-L To: Mayor and City Council From: Dean Kubani, Manager - Office of Sustainability and the Environment Subject: Resolution to Participate in Community Choice Aggregation Feasibility Study Recommended Action Staff recommends that the City Council approve the attached resolution of participation to study the feasibility of community choice aggregation Executive Summary The City of Santa Monica has been invited to participate in a feasibility stud y of a Community Choice Aggregation (CCA) energy program for the South Bay region. If implemented the CCA could provide residential, commercial and institutional energy customers in Santa Monica with options to purchase up to 100% renewable electricity at competitive rates, helping the City to achieve its greenhouse gas emission reduction targets. In order to participate in the feasibility study Council must adopt the attached resolution. The resolution is non-binding and there is no cost to the City to participate in this study. Background On February 26, 2013 Council adopted the 15x15 Climate Action Plan and established additional community greenhouse gas emissions reduction targets of 30% reduction of emissions below 1990 by the year 2030 and 80% reduction below 1990 levels by 2050. Achieving these aggressive reduction targets will require a concerted effort across all sectors of the community to shift to away from fossil fuel use in favor of renewable sources of energy. On May 27, 2014 Council voted to oppose California Assembly Bill 2145, which would have modified the rules for Community Choice Aggregation (CCA) that allow 2 communities to use their collective buying power to purchase renewable power contracts, using the existing electrical grid. AB 2145 would change CCAs in California from "opt-out" systems and instead require individual residents to "opt-in," making it much harder for cities such as Santa Monica to attain carbon emission goals. AB 2145 was placed in suspension in August 2014 and eventually died. Discussion Community Choice Aggregation (CCA ) enables local governments to procure or develop power on behalf of municipal facilities, residents and businesses. CCA creates a functional partnership between the municipality and existing utility, allowing local communities to take control of the decision making about the sources of the electrical power, with the utility continuing to provide the transmission of that power. CCA energy programs were made possible in California by Assembly Bill 117 in 2002. Passage of this bill resulted in the establishment of several CCA programs in the state in recent years. The largest of these programs are Marin Clean Energy and Sonoma Clean Power which provide 33%, 50% and 100% renewable power mixes to customers in numerous cities within their jurisdictions. Both of these CCA programs are already exceeding the state’s renewable portfolio standard and are doing so at lower prices to customers than the existing utility rates. Currently no CCA program exists in Southern California. The South Bay Clean Power Working Group (South Bay Clean Power), an ad hoc citizens group with members from Hermosa Beach, Manhattan Beach, Redondo Beach, and Torrance is actively evaluating the possibility of creating a CCA for the South Bay region. The stated goals for this program inc luding providing a secure energy supply at stable and competitive prices to customers and reducing greenhouse gas emissions by stimulating and sustaining the development and use of renewable energy. The first step in developing a CCA is to conduct a tech nical and financial feasibility study, and determining the level of community support for such a program. South Bay 3 Clean Power is coordinating an effort to identify sources of grant funding to conduct a feasibility study for a South Bay area CCA and has asked Santa Monica to consider adopting a non-binding resolution to participate in a feasibility study with other area cities if such a study is ultimately funded. To date the cities of Hermosa Beach, Manhattan Beach, and Redondo Beach have adopted resolutions. Several other South Bay cities, including Torrance and Carson are considering adopting similar resolutions to participate in the near future. The participating cities are not being asked to fund the study. At their November 17, 2014 meeting the Santa Monica Task Force on the Environment discussed CCA and unanimously adopted the following motion: The Task Force on the Environment recommends that City Council adopt a non- binding resolution to join with other local cities to participate in a feasibility study of Community Choice Aggregation. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of adopting the attached resolution Prepared by: Dean Kubani – Sustainability Manager Approved: Forwarded to Council: Dean Kubani Sustainability Manager, Office of Sustainability and the Environment Rod Gould City Manager Attached: Resolution 1 City Council Meeting: January 13, 2015 Santa Monica, California RESOLUTION NUMBER _________ (CCS) (City Council Series) A RESOLUTION OF THE SANTA MONICA CITY COUNCIL AUTHORIZING THE CITY TO PARTICIPATE IN A FEASIBILITY STUDY RELATED TO COMMUNITY CHOICE AGGREGATION WHEREAS, the City of Santa Monica has demonstrated its commitment to an environmentally sustainable future through its policy goals and actions, including energy reduction, and clean energy programs ; and WHEREAS, the City of Santa Monica has identified Community Choice Aggregation as a potential strategy to meet local clean energy goals and projected greenhouse gas reduction targets; and WHEREAS, Community Choice Aggregation is a mechanism by which local governments assume responsibility for providing electrical power for residential and commercial customers in their jurisdiction in partnership with Southern California Edison; and 2 WHEREAS, Community Choice Aggregation, if determined to be technically and financially feas ible, could provide substantial environmental and economic benefits to all residents and businesses in the South Bay of Los Angeles; and WHEREAS, Community Choice Aggregation also provides the opportunity to fund and implement a wide variety of energy-related programs of interest to the community; and WHEREAS, in addition to understanding the technical and financial feasibility of Community Choice Aggregation, it is important to determine whether there is adequate public support for Community Choice Aggregation; and WHEREAS, determining technical and financial feasibility, as well as public support, requires an analysis of energy load data from Southern California Edison and a focused public education and outreach effort. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby directs staff to participate in the pre- development and feasibility phase of Community Choice Aggregation (“CCA”) for the City of Santa Monica. Beyond staff time, the City shall not be obligated to expend any City funds, unless separately authorized by the City Council. 3 SECTION 2. The City Manager is authorized to execute the appropriate documents to allow the City and/or its technical consultants to request energy usage load data from S outhern California Edison so that it may be analyzed as part of a CCA technical feasibility study. SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ MARSHA JONES MOUTRIE City Attorney Prepared remarks by Michelle Ellison, Alternate Director for Ojai on the Clean Power Alliance board, at the October 4, 2018 board meeting. 100% Renewable Energy Default: The Clear Choice I know many of our jurisdictions have made our renewable energy default selections by now, but we still have time to reconsider those selections before the October 31st deadline. I’d like to take the next few minutes to convey the importance of the default and the unique opportunity before our communities to make immediate and substantial progress by setting the default at 100%. As we were just talking about earlier in this board meeting, we chose the name Clean Power Alliance, because promotion of clean power is central to our purpose. Defaults are a big deal. We’d be mistaken to overlook this and not thoughtfully consider the impacts. Behavioral studies demonstrate that a vast majority of people stick with the default status. According to Cass Sunstein, a Harvard legal scholar and behavioral economist, “The choice of the default rule may turn out to be the most important decision a private or public institution makes”, and he emphasizes “the immense power of the default rule in affecting social outcomes.” He pointed out that in Germany, just 12% of the population are organ donors, while across the border in Austria, over 99% are organ donors. The defaults are what make the difference. Sunstein goes on to point out that similarly, in Germany,1% of the population is powered by green energy. However, in two specific counties, they use over 90% green energy. Again, the defaults are what make the difference.i There are many other examples of the power of defaults across society. In our case, by setting the default at 100% renewable, we will get much more participation at that level than if we set it at a lower tier. Likely only a small percentage of customers will opt down, most will remain at 100%. Likewise, if we set the default at a lower tier like 36% or 50%, that’s mostly what we’ll get. Despite our best intentions, fe w of us would opt up, not because we don’t want to, it’s often just because of inertia or the busyness of life. Industry studies reveal there is overwhelming public support for renewable energy, and people are willing to pay more for it. Last month, there was a fascinating article in Vox which referenced polling and focus groups commissioned by a trade group for utilities. The market research showed that customers want cleaner energy and they want it now. ii California recently passed legislation which targets 100% clean energy by 2045. Now, consider this…the 100% default gives us an opportunity to achieve that goal 25 years ahead of schedule! Simply by setting the default at 100%, as early as the middle of next year 2019 when service begins, our communities will be powered by close to 100% renewable, a huge improvement from the roughly 30% renewable mix that is standard today. I can’t think of a more tangible, immediate, or easy way to make this kind of substantial leap forward. It’ll take much more time, effort and expense for our communities to get there otherwise. The projected cost difference for the 100% option is 7-9% more than Edison’s base rate, but the renewable content is 66% more. I’d say that’s a very compelling return. And it’s a small price to pay for the long-term benefits. While there’s a slight rate savings of 1-2% in the lower two tiers, there’s far less renewable in those, so we must consider the costs of externalities associated with more polluting emissions. Emissions are costly to our society and need to be factored into our decision-making. Responsible, forward thinking reveals that the perception of saving a buck or two in the short term is a dangerous illusion. And what’s noteworthy is that we now have a provision allowing low -income customers to participate in the 100% plan at no additional cost in those jurisdictions with a 100% default. I know that had been a concern before, so I’m pleased to see it’s being addressed. One other consideration, I’ve heard the objection, “We don’t want to force anything on anyone.” Well, we aren’t. And this is not a rate hike. We are simply making a suggestion when we set the default, and customers have the freedom and ability to choose another plan. So, with the default, we’re either suggesting 36% or 50% or 100% for our communities. Why wouldn’t we suggest 100%? Southern California is a beacon. We are thought leaders that set a tone and influence the culture of our country and the entire world. Many of you are elected leaders, or report to elected officials, and with elections coming up, this is an opportunity for you to demonstrate leadership on an issue of consequence, with overwhelming public support. So far we have five of our member agencies at 100%, and others are considering it. It would be fantastic to have more of you join us and help pave the way for a cleaner, healthier, more sustainable tomorrow. In closing, the default plans we select today will impact the amount of renewable energy powering us into future. This is likely one of the biggest impact decisions many of us will ever make. While we could change our defaults down the road, that would be more difficult than setting it right from the get go. Thankfully, renewable energy is now readily available and affordable, we just need to start choosing it. Thank you. Michelle Ellison, 414.915.4140, michelleleahy@hotmail.com ihttps://pdfs.semanticscholar.org/b19a/8bdd98943517a28f6871a546add144c80253.pdf https://www.youtube.com/watch?v=N_PsDSB4nwU ii https://www.vox.com/energy-and-environment/2018/9/14/17853884/utilities-renewable-energy-100-percent-public- opinion Other sources: https://www.scientificamerican.com/article/the-power-of-the-nudge-to-change-our-energy-future/ https://www.vox.com/energy-and-environment/2017/11/20/16678350/global-support-clean-energy IPCC Secretariat c/o WMO · 7 bis, Avenue de la Paix · C.P: 2300 · CH-1211 Geneva 2 · Switzerland telephone +41 22 730 8208 / 54 / 84 · fax +41 22 730 8025 / 13 · email IPCC -Sec@wmo.int · www.ipcc.ch 2018/24/PR IPCC PRESS RELEASE 8 October 2018 Summary for Policymakers of IPCC Special Report on Global Warming of 1.5ºC approved by governments INCHEON, Republic of Korea, 8 Oct - Limiting global warming to 1.5ºC would require rapid, far- reaching and unprecedented changes in all aspects of society, the IPCC said in a new assessment. With clear benefits to people and natural ecosystems, limiting global warming to 1.5ºC compared to 2ºC could go hand in hand with ensuring a more sustainable and equitable society, the Intergovernmental Panel on Climate Change (IPCC) said on Monday. The Special Report on Global Warming of 1.5ºC was approved by the IPCC on Saturday in Incheon, Republic of Korea. It will be a key scientific input into the Katowice Climate Change Conference in Poland in December, when governments review the Paris Agreement to tackle climate change. “With more than 6,000 scientific references cited and the dedicated contribution of thousands of expert and government reviewers worldwide, this important report testifies to the breadth and policy relevance of the IPCC,” said Hoesung Lee, Chair of the IPCC. Ninety-one authors and review editors from 40 countries prepared the IPCC report in response to an invitation from the United Nations Framework Convention on Climate Change (UNFCCC) when it adopted the Paris Agreement in 2015. The report’s full name is Global Warming of 1.5°C, an IPCC special report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty. “One of the key messages that comes out very strongly from this report is that we are already seeing the consequences of 1°C of global warming through more extreme weather, rising sea levels and diminishing Arctic sea ice, among other changes,” said Panmao Zhai, Co-Chair of IPCC Working Group I. The report highlights a number of climate change impacts that could be avoided by limiting global warming to 1.5ºC compared to 2ºC, or more. For instance, by 2100, global sea level rise would be 10 cm lower with global warming of 1.5°C compared with 2°C. The likelihood of an Arctic Ocean free of sea ice in summer would be once per century with global warming of 1.5°C, compared with at least once per decade with 2°C. Coral reefs would decline by 70-90 percent with global warming of 1.5°C, whereas virtually all (> 99 percent) would be lost with 2ºC. “Every extra bit of warming matters, especially since warming of 1.5ºC or higher increases the risk associated with long-lasting or irreversible changes, such as the loss of some ecosystems,” said Hans-Otto Pörtner, Co-Chair of IPCC Working Group II. Limiting global warming would also give people and ecosystems more room to adapt and remain below relevant risk thresholds, added Pörtner. The report also examines pathways available to limit warming to 1.5ºC, what it would take to achieve them and what the consequences could be. - 2 - “The good news is that some of the kinds of actions that would be needed to limit global warming to 1.5ºC are already underway around the world, but they would need to accelerate,” said Valerie Masson-Delmotte, Co-Chair of Working Group I. The report finds that limiting global warming to 1.5°C would require “rapid and far -reaching” transitions in land, energy, industry, buildings, transport, and cities. Global net human-caused emissions of carbon dioxide (CO2) would need to fall by about 45 percent from 2010 levels by 2030, reaching ‘net zero’ around 2050. This means that any remaining emissions would need to be balanced by removing CO2 from the air. “Limiting warming to 1.5ºC is possible within the laws of chemistry and physics but doing so would require unprecedented changes,” said Jim Skea, Co-Chair of IPCC Working Group III. Allowing the global temperature to temporarily exceed or ‘overshoot’ 1.5ºC would mean a greater reliance on techniques that remove CO2 from the air to return global temperature to below 1.5ºC by 2100. The effectiveness of such techniques are unproven at large scale and some may carry significant risks for sustainable development, the report notes. “Limiting global warming to 1.5°C compared with 2°C would reduce challenging impacts on ecosystems, human health and well-being, making it easier to achieve the United Nations Sustainable Development Goals,” said Priyardarshi Shukla, Co-Chair of IPCC Working Group III. The decisions we make today are critical in ensuring a safe and sustainable world for everyone, both now and in the future, said Debra Roberts, Co-Chair of IPCC Working Group II. “This report gives policymakers and practitioners the information they need to make decisions that tackle climate change while considering local context and people’s needs. The next few years are probably the most important in our history,” she said. The IPCC is the leading world body f or assessing the science related to climate change, its impacts and potential future risks, and possible response options. The report was prepared under the scientific leadership of all three IPCC working groups. Working Group I assesses the physical science basis of climate change; Working Group II addresses impacts, adaptation and vulnerability; and Working Group III deals with the mitigation of climate change. The Paris Agreement adopted by 195 nations at the 21st Conference of the Parties to the UNFCCC in December 2015 included the aim of strengthening the global response to the threat of climate change by “holding the increase in the global average temperature to well below 2°C above pre- industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.” As part of the decision to adopt the Paris Agreement, the IPCC was invited to produce, in 2018, a Special Report on global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways. The IPCC accepted the invitation, adding that the Special Report would look at these issues in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty. Global Warming of 1.5ºC is the first in a series of Special Reports to be produced in the IPCC’s Sixth Assessment Cycle. Next year the IPCC will release the Special Report on the Ocean and Cryosphere in a Changing Climate, and Climate Change and Land, which looks at how climate change affects land use. - 3 - The Summary for Policymakers (SPM) presents the key findings of the Special Report, based on the assessment of the available scientific, technical and socio-economic literature relevant to global warming of 1.5°C. The Summary for Policymakers of the Special Report on Global Warming of 1.5ºC (SR15) is available at http://www.ipcc.ch/report/sr15/ or www.ipcc.ch. Key statistics of the Special Report on Global Warming of 1.5ºC 91 authors from 44 citizenships and 40 countries of residence - 14 Coordinating Lead Authors (CLAs) - 60 Lead authors (LAs) - 17 Review Editors (REs) 133 Contributing authors (CAs) Over 6,000 cited references A total of 42,001 expert and government review comments (First Order Draft 12,895; Second Order Draft 25,476; Final Government Draft: 3,630) For more information, contact: IPCC Press Office, Email: ipcc-media@wmo.int Werani Zabula +41 79 108 3157 or Nina Peeva +41 79 516 7068 Follow IPCC on Facebook, Twitter , LinkedIn and Instagram Notes for editors The Special Report on Global Warming of 1.5 ºC , known as SR15, is being prepared in response to an invitation from the 21st Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change in December 2015, when they reached the Paris Agreement, and will inform the Talanoa Dialogue at the 24th Conference of the Parties (COP24). The Talanoa Dialogue will take stock of the collective efforts of Parties in relation to progress towards the long - term goal of the Paris Agreement, and to inform the preparation of nationally determined contributions. Details of the report, including the approved outline, can be found on the report page. The report was prepared under the joint scientific leadership of all three IPCC Working Groups, with support from the Working Group I Technical Support Unit. What is the IPCC? The Intergovernmental Panel on Climate Change (IPCC) is the UN body for assessing the science related to climate change. It was established by the United Nations Environment Programme (UN Environment) and the World Meteorological Organization (WMO) in 1988 to provide policymakers with regular scientific assessments concerning climate change, its implications and potential future risks, as well as to put forward adaptation and mitigation strategies. It has 195 member states. IPCC assessments provide governments, at all levels, with scientific information that they can use to develop climate policies. IPCC assessments are a key input into the international negotiations to tackle climate change. IPCC reports are drafted and reviewed in several stages, thus g uaranteeing objectivity and transparency. The IPCC assesses the thousands of scientific papers published each year to tell policymakers what we know and don't know about the risks related to climate change. The IPCC identifies where - 4 - there is agreement in the scientific community, where there are differences of opinion, and where further research is needed. It does not conduct its own research. To produce its reports, the IPCC mobilizes hundreds of scientists. These scientists and officials are drawn from diverse backgrounds. Only a dozen permanent staff work in the IPCC's Secretariat. The IPCC has three working groups: Working Group I, dealing with the physical science basis of climate change; Working Group II, dealing with impacts, adaptation and vulnerability; and Working Group III, dealing with the mitigation of climate change. It also has a Task Force on National Greenhouse Gas Inventories that develops methodologies for measuring emissions and removals. IPCC Assessment Reports consist of contributions from each of the three working groups and a Synthesis Report. Special Reports undertake an assessment of cross-disciplinary issues that span more than one working group and are shorter and more focused than the main assessments. Sixth Assessment Cycle At its 41st Session in February 2015, the IPCC decided to produce a Sixth Assessment Report (AR6). At its 42nd Session in October 2015 it elected a new Bureau that would oversee the work on this report and Special Reports to be produced in the assessment cycle. At its 43rd Session in April 2016, it decided to produce three Special Reports, a Methodology Report and AR6. The Methodology Report to refine the 2006 IPCC Guidelines for National Greenhouse Gas Inventories will be delivered in 2019. Besides Global Warming of 1.5ºC, the IPCC will finalize two further special reports in 2019: the Special Report on the Ocean and Cryosphere in a Changing Climate and Climate Change and Land: an IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems. The AR6 Synthesis Report will be finalized in the first half of 2022, following the three working group contributions to AR6 in 2021. For more information, including links to the IPCC reports, go to: www.ipcc.ch 1 Leah Kellen From:Julie Engelman <juliesengelman@gmail.com> Sent:Friday, October 19, 2018 8:21 AM To:councilmtgitems Subject:renewable energy Please support 100% renewable energy for Santa monica. WE should be pproud to be climate change leaders!!!! Julie Engelman 421 California Ave Thank you! Item 8-A 10/23/18 1 of 10 1 Leah Kellen From:Eleni Petrow <epetrow@globalgreen.org> Sent:Monday, October 22, 2018 11:16 AM To:councilmtgitems Cc:William Bridge; Andrea Ostenso; Madisen Gittlin Subject:100% Renewable Energy for Santa Monica Dear Santa Monica City Council, I am writing on behalf of Global Green to strongly encourage you to choose 100% renewable energy as the default tier for all residential customers. This decision will advance Santa Monica's long legacy of leadership in sustainability and empower residents with clean energy. The Santa Monica City Staff report shows that residents have the choice to opt out of the default tier and choose a 50% or 36% renewable energy supply mix through the Clean Power Alliance, which the report estimates will still lower their rate up to 2%. Also, lower income residents receiving the CARE rate will still receive the 30% discount through SCE and are not expected to have any net impact on their bill with the 100% renewable energy default tier. Choosing 100% renewable energy as our default tier is critical and an opportunity for Santa Monica to be a leader in providing clean energy to our community. Thank you and all the best, Eleni Eleni Petrow | Environmental Policy and Green Urbanism Associate GLOBAL GREEN WeWork c/o GLOBAL GREEN 520 Broadway, Suite 200 Santa Monica, CA 90401 tel: 310.581.2700 ext. 112 fax:310.581.2702 www.globalgreen.org Item 8-A 10/23/18 2 of 10 1 Leah Kellen From:Kathy Seal <kathyseal@gmail.com> Sent:Friday, October 19, 2018 9:13 AM To:councilmtgitems Subject:Please support 100% renewable energy Thank you! -- Kathy Seal 310-452-2769 Coauthor, Pressured Parents, Stressed-out Kids: Dealing With Competition While Raising a Successful Child and Motivated Minds: Raising Children to Love Learning Item 8-A 10/23/18 3 of 10 1 Leah Kellen From:Kent Strumpell <kentstrum@gmail.com> Sent:Saturday, October 20, 2018 12:37 PM To:councilmtgitems Cc:Garrett T. Wong Subject:Item 8E, Clean Power, I support 100% Dear Councilmembers,    Thank you and city staff for your long‐running efforts to bring a CCA program to our city.  I am excited to see it begin  soon!    We have just installed a solar system on our home here which is now supplying all of the power for our household.  We  made this significant investment because we want to be part of the solution addressing climate change.  So we are  delighted that Santa Monica will be participating in the Clean Power Alliance, helping our city meet our goal of carbon  neutrality.  We strongly support setting the default at 100%, which is consistent with our aggressive response to the  danger of global warming.    Thank you for all you do!    Kent Strumpell  1211 Michigan Ave.  Santa Monica  Item 8-A 10/23/18 4 of 10 1 Leah Kellen From:Randy Ziglar <randyziglar@hotmail.com> Sent:Saturday, October 20, 2018 2:05 PM To:councilmtgitems Subject:10/23 Council Agenda Item 8A Please vote in the affirmative for the staff recommended Clean Power Alliance (CPA). I am a 100% in favor for  100% renewable energy in Santa Monica.  Sincerely,  Randy Ziglar  2046 14th St. #11  Santa Monica, CA 90405  Item 8-A 10/23/18 5 of 10 1 Leah Kellen From:Danny Maier <d.maier555@gmail.com> Sent:Monday, October 22, 2018 3:52 PM To:councilmtgitems Subject:10/23 Council Agenda Item 8A Hello,  I am writing to you as a fellow earthling that is genuinely concerned with our planet and the current state it is in. We  need to act NOW to mitigate the effects of climate change and by adopting 100% renewable energy the city of Santa  Monica would ultimately be starting the slow process to combat this. Not only will this be great for Santa Monica, but  the entire world will be taking notice to see the city taking huge steps to combat climate change. I urge you again to  make this happen as Santa Monica is a city that is a leader in this world and by adopting 100% renewable energy other  cities will do so as well.   Thank you,  Danny Maier   Item 8-A 10/23/18 6 of 10 1 Vernice Hankins From:Nikita Bahadur <nikita.bahadur1@gmail.com> Sent:Monday, October 22, 2018 8:29 PM To:councilmtgitems Subject:10/23 Council Agenda Item 8A To Santa Monica City Council,    I am writing to support 100% renewable energy in Santa Monica.  Please continue Santa Monica’s legacy as leaders of  sustainability by choosing 100% renewable energy for customers starting in 2019.  I am a resident of Santa Monica  attending Santa Monica High School, and a member of Team Marine and the Santa Monica Climate Corps.     Thank you,  Nikita Bahadur  Item 8-A 10/23/18 7 of 10 1 Vernice Hankins From:Sixtine Foucaut <sixtinefoucaut@gmail.com> Sent:Tuesday, October 23, 2018 11:28 AM To:councilmtgitems Subject:10/23 Council Agenda Item 8A Santa Monica City Council,    My name is Sixtine Foucaut, and I am a graduate of Santa Monica High School. I am currently a sophomore at Chapman  University, and have worked with Climate Action Santa Monica’s Climate Corps for the past two years. I am writing to  you because I would like to express my support for 100% renewable energy as our default choice as our city moves  forward with the Clean Power Alliance. As Santa Monica is one of Southern California’s most prized coastal cities, I  believe it is crucial to continue promoting sustainability to the maximum whenever possible, and striving towards 100%  renewable energy would be an ideal way to do so.    Looking forward to a more sustainable Santa Monica! Thank you very much for your consideration.    Sincerely,  Sixtine Foucaut  Item 8-A 10/23/18 8 of 10 1 Vernice Hankins From:Brodsky, Michael <mbrodsky@lmu.edu> Sent:Tuesday, October 23, 2018 11:52 AM To:councilmtgitems Subject:I support 100% Renewable Energy 10/23 Council Agenda Item 8A Dear City Council,    I support 100% renewable energy for Santa Monica!    Let's do our part to make Santa Monica healthy, clean and sustainable.    Sincerely,    Michael Brodsky  Santa Monica   Item 8-A 10/23/18 9 of 10 1 Vernice Hankins From:Amy Southern <alynnesouthern@gmail.com> Sent:Tuesday, October 23, 2018 11:53 AM To:councilmtgitems Subject:100% renewability for Santa Monica!! Dear Santa Monica City Council, I am Amy Southern and I have lived in Santa Monica for almost twelve years now. Seeing how this beautiful city and bay has adapted to important issues due to climate change such as sea level rise, warmer climate, ocean pollution, and more, has inspired me to help heal it. There are lots of ways to become sustainable and it’s very easy. From talking with and surveying residents for the city of Santa Monica for 2 years now, I have seen that people are becoming more aware and interested in changing their habits. From thinking about how to transport yourself sustainably, to watching your shower time and switching to LED lightbulbs, reducing your carbon footprint is simple and easy. Through wonderful organizations put together by the city such as Climate Action Santa Monica, it’s possible for anyone who wants to get involved and reduce their carbon footprint to learn how. I know 100% renewability is possible for the city of Santa Monica because I have seen proof that people of this community are ready for it and willing to participate to make it happen. There are already many ways the city has incorporated renewable energy into its architecture such as solar panels for example. With Santa Monica making the switch to 100% renewable energy, we will be leading the way as a green community and setting the example we want to see in future years to come. Sincerely, Amy Southern Item 8-A 10/23/18 10 of 10 1 Vernice Hankins From:robin park <robinxpark@gmail.com> Sent:Tuesday, October 23, 2018 1:07 PM To:councilmtgitems Subject:Please support 100% renewable energy Dear Santa Monica City Council Members, I urge you to support 100% renewable energy when deciding upon the energy tier with the Clean Power Alliance. Our city needs to continue its leadership position in California in combating climate change. Thank you very much, Robin Park 2901 4th Street Santa Monica, CA 90405 -- Robin Park 1 Vernice Hankins From:Council Mailbox Sent:Tuesday, October 23, 2018 4:08 PM To:Ted Winterer; Gleam Davis; Pam OConnor; Sue Himmelrich; Terry O’Day; Councilmember Kevin McKeown; Tony Vazquez Cc:councilmtgitems; Rick Cole; Katie E. Lichtig; Anuj Gupta; Dean Kubani Subject:FW: 10/23/2018 Council Agenda Item 8A Council‐    Please see the email below regarding the proposed renewable energy default rate.    Thank you,    Stephanie      From: Katharine Dreyfuss [mailto:kitdreyfuss@gmail.com]   Sent: Tuesday, October 23, 2018 3:53 PM  To: Council Mailbox <Council.Mailbox@SMGOV.NET>  Subject: 10/23/2018 Council Agenda Item 8A  Dear City Council members: Please vote for the Clean Power Alliance (CPA) offer to provide 100% renewable energy to Santa Monica businesses and residents. We need to invest in a safe climate, healthy habitat, safe economy and resilient community. Thank you. Sincerely, Kit Dreyfuss 1 Vernice Hankins From:Ferris Kawar <ferrisk2@gmail.com> Sent:Tuesday, October 23, 2018 5:01 PM To:councilmtgitems Subject:Public Comment on Clean Power Alliance - Item 8A Dear Mayor Winterer and Councilmembers,      I am a resident of Ocean Park neighborhood and I work for Santa Monica College. I am wholly in favor of making 100%  renewable energy the default tier when the City switches to the CPA next year.   I grew up in San Mateo, CA which is one of the early adopters of community choice energy. They are not as green as  Santa Monica yet most of their residents still chose to remain with the 100% level of renewable energy in their  electricity mix.      I’m confident our residents and businesses will be happy to have the opportunity to receive 100% of their energy from  clean sources for a little bit more on their bill.      Thank you for your continued leadership on sustainability and showing the rest of the country that it can be done.      Best regards,     Ferris Kawar    2666 31st St, #7   Santa Monica, CA 90405  1 Vernice Hankins From:Amy Sullivan <amyransullivan@gmail.com> Sent:Tuesday, October 23, 2018 5:12 PM To:councilmtgitems Subject:Vote 100% on CPA Energy default please!! Hi Council, Thanks for all the hard work you do! Just a quick note to voice my opinion that you should vote to make the default 100% renewable energy. Most of us residents can afford the minimal increase, and many likely even notice the change. What we cannot afford is missing out on any opportunities to maximize clean energy efforts! Let's continue to be a leader and inspiration for our future, our children, and the environment. Thank you, Amy Sullivan October 23, 2018 City of Santa Monica Office of Sustainability and the Environment Vo yager Wind: Future CPA 21.6 MW Wind Power Project Mojave, CA Re newable Electricity for Re sidential Customers 0 100,000 200,000 300,000 400,000 500,000 600,000 Vehicle Fuel - Diesel Building Natural Gas Use Building Electricity Use Vehicle Fuel - Gasoline Santa Monica Emissions by Source (2015) Climate Action Sustainable Mobility: Bike, Walk , Transit, etc. Tr ansition to Electric Ve hicles Climate Action 100% Renewable Electricity: Community Choice Aggregation Climate Action Reduce Fossil Fuel Use: Electrification & Biogas 10/29/2018City of Santa Monica | Public Works Department | What is Community Choice Aggregation (CCA)? Local governments ‘aggregate’ community electricity demand to buy and sell power on their behalf. Clean Power Alliance purchases clean power and Southern California Edison delivers it. 310/29/2018City of Santa Monica | Public Works Department | What are the benefits? Customer Benefits •Increased options •Competitive pricing •Higher rate of renewable energy •Same billing and SCE infrastructure •Same reliability 410/29/2018City of Santa Monica | Public Works Department | Community Benefits •Local control by local governments & stakeholders •Local economic development oppor tunities •Locally tailored incentives & programs •Greenhouse gas reductions 510/29/2018City of Santa Monica | Public Works Department | 4 Years in the Making… 2015 •Januar y –Council adopts resolution to participate in feasibility study with South Bay Clean Power 2017 •April –LA County forms Los Angeles Community Choice Energy, now Clean Power Alliance (CPA) •December –Council adopts resolution to become a member of CPA 2018 •Februar y –Council selects 100% renewable energy tier for municipal and commercial accounts •August –CPA selects rate tiers (36%, 50%, 100%) •October –Council to select default tier for residential customers •November –CPA to finalize customer rates for tiers 2019 •Februar y 2019 –CPA residential ser vice begins •Summer –CPA commercial ser vice begins Clean Power Alliance is structured through a Joint Powers Authority (JPA) made up of 32 public agency members; including the Counties of Los Angeles and Ventura and 30 Cities. Clean Power Alliance will soon serve approximately 1 million customers across Southern California. 610/29/2018City of Santa Monica | Public Works Department | Clean Power Alliance Product Offerings Discounts are estimates and are subject to final rate setting by Clean Power Alliance Board. 7 Tier Product Name Lean Power Clean Power 100% Green Power Rate Impact Relative to SCE 1-2% discount 0-1% discount 7-9% premium; No net increase for CARE customers Total Emissions Reduction Potential 1%10%19% Emissions Reduction Impact (compared to 1990) Effectively no reduction 27%35% 10/29/2018City of Santa Monica | Public Works Department | Average Monthly Bill Impact 8 $66.70 $66.04 $66.70 $71.37 $46.69 $46.23 $46.69 $46.69 $- $10 $20 $30 $40 $50 $60 $70 $80 SCE 34% Renewable CPA 36% Lean Power CPA 50% Clean Power CPA 100% Green Power Average Bill CARE Customer Bill •At 100% RE, average customer will see approx $6/month increase in SCE bill •CARE (low-income qualified) customers will see no increase in costs 10/29/2018City of Santa Monica | Public Works Department | Customer Options 1.Do nothing –receive 100% renewable energy 2.Opt down to a lower tier : 50% or 36% 3.Opt out and stay with SCE 4.Customers can opt down, opt up, opt out or opt ba ck in at any time 910/29/2018City of Santa Monica | Public Works Department | 10 St ar ting in December, CPA will send all customers: •4 notices via mail with information and benefits of CPA •Rate Comparison mailer which illustrates the estimated electricity costs with CPA or SCE for a typical small commercial customer. St aff and local par tners will also conduct outreach through Seascape, blogs, newsletters, OSE website, social media, and in-person presentations. Notice sent to Unincorporated LA County and South Pasadena Customer Outreach 10/29/2018City of Santa Monica | Public Works Department | 11 100% Communities (as of 10/19/18) 10/29/2018City of Santa Monica | Public Works Department | Staff recommend that Council Select 100% renewable energy as the default tier for residential customers Alternative Actions: •Select 50% renewable energy as the default tier •Select 36% renewable energy as the default tier 1510/29/2018City of Santa Monica | Public Works Department |