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HomeMy WebLinkAboutItem 6b. Lead by Example - A Plan for Carbon Neutral City OperationsCouncil- Report Item 6b Department: Administration Cost Center: 1005 For Agenda of: 7/6/2021 Placement: Public Hearing Estimated Time: 60 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Shannon Pressler, CivicSpark Fellow; Bob Hill, Sustainability and Natural Resources Official; Chris Read, Sustainability Manager SUBJECT: LEAD BY EXAMPLE: A PLAN FOR CARBON NEUTRAL CITY OPERATIONS RECOMMENDATION Adopt a Resolution entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, approving Lead by Example: A Plan for Carbon Neutral City Operations." REPORT -IN -BRIEF Lead by Example: A Plan for Carbon Neutral City Operations (Lead by Example) establishes a pathway to reduce greenhouse gas (GHG) emissions across City operations to achieve the Council -adopted goal of carbon neutral City operations by 2030. Lead by Example builds on the City's long standing tradition of operational sustainability and commitment to excellence. Consistent with the foundation set by the Climate Action Plan for Community Recovery (2020), Lead by Example establishes a trajectory towards carbon neutral City operations through seven emissions sectors each with a long-term goal, set of measurable objectives, and actions to be initiated in the 2021-23 Financial Plan, 2023-25 Financial Plan, and 2025-27/2027-29 Financial Plans. Lead by Example places a special focus on actions to be initiated in the 2021-23 Financial Plan. The long-term sector specific goals are as follows: 1. No fossil fuels are used to power City buildings and facilities. 2. The City eliminates fossil fuel use in vehicle and equipment fleet. 3. City employee commute is aligned with and substantially exceeds General Plan Mode Split Objectives by 2030. 4. City buildings, facilities, and operations are zero waste as defined by the Zero Waste International Alliance (ZWIA). 5. Direct emissions from the provision of wastewater are minimized to the maximum extent feasible. Page 729 of 847 Item 6b 6. Carbon sequestration within the City's Greenbelt and Urban Forest system is optimized. 7. The City's procurement, budget, investment, and finance processes support and accelerate achieving the City's carbon neutrality goal. At full implementation, Lead by Example objectives (not taking into account emissions offsets from carbon sequestration activities) will contribute substantial progress towards the operational carbon neutrality goal and achieve GHG reductions of 54 percent below "business as usual" scenario emissions in 2025 and 84 percent below "business as usual" scenario emissions in 2030. With GHG emissions offsets from carbon sequestration initiatives included, the City is expected to achieve its carbon neutrality target.' DISCUSSION Background In August 2020, the City of San Luis Obispo City Council adopted the Climate Action Plan for Community Recovery (CAP) via Resolution R-11159 (2020 Series). The CAP establishes a trajectory to carbon neutrality through six decarbonization pillars and 27 foundational actions. Throughout the CAP development and adoption progress, the City heard from Council, the community, and key stakeholders that the City should play a highly visible leadership role in demonstrating the viability of low carbon operations. In response to this feedback, the first pillar of the CAP, titled "Lead by Example", is focused on eliminating emissions from City operations while sharing successes and lessons learned with the community. The goal for the pillar is to achieve carbon neutral City operations by 2030, and foundational action "Leadership 1.1" calls for the City to adopt a municipal carbon neutrality plan in summer 2021. Like many organizations, the City operates buildings, facilities, and a vehicle fleet, generates office and landscape waste, and has employees that commute to work. Allof these activities, collectively referred to as "City operations," generate greenhouse gas emissions. For decades, the City has invested in organizational sustainability and over the last decade has made substantial investments in clean energy, energy efficiency, and clean fleet initiatives. Figure 1 shows a list of key climate and sustainability initiatives completed by the City before and during Lead by Example. These incremental improvements have established a foundation for the transformational actions required to achieve the Council's goal of carbon neutral municipal operations by 2030. Emissions offset estimates related to carbon sequestration initiatives currently have high levels of uncertainty and are called out separately from the other emissions reductions sectors for transparency. This issue is described in more detail in the body of the Council Agenda Report. Page 730 of 847 Item 6b The plan to achieve these transformational actions, referred to as "Lead by Example: A Plan for Carbon Neutral City Operations" is included as Attachment A and provides the strategic framework and roadmap to achieve operational carbon neutrality while also helping the organization to thrive in a rapidly changing world. Figure 1. Previous Municipal Climate Action and Sustainability Initiatives • Installed a solar EV charger at City Hall • Completed first purchase order for two electric buses • Continued to enhance the City's award- winning bus system • Completed area 4 and 5 paving with new bike lanes • Retrofitted streetlights with high-efficlency LED bulbs in 2016 • Retrofitted 842 Palm parking garage with high -efficiency LED bulbs in 2020 • ❑iverted recycled water for use at Corp Yard car wash • Retrofitted the Water Resource Recovery Facility for energy efficiency and constructed a methane gas recapture plant to generate power • Supported development of the regional anerobic digester to generate clean power and - compost from the City' green waste • Supported development of the regional anerobic digester to generate clean power and - compost from the City' green waste • Adopted Active Transportation Plan in Q 1 2021 • Established Solid Waste and Recycling Section of the Utilities Department Adopted a community transportation policy with the goal of 20 percent of trips on bicycle, 12 percent on transit, and 18 percent walking, car-pools, and other forms of transportation! Purchased hybrid fleet vehicles, an electric bicycle fleet vehicle, and transitioned diesel fleet vehicles to renewable diesel Conserved over 3,000 acres since 2005, and over 7,800 acres since the inception of the Open Space Conservation Program Initiated energy efficiency and energy generation project at the Water Treatment Plant Identified Climate Action as a Major City Goal in the 2017-19 Financial Plan Identified Climate Action, Housing, and Sustainable Transportation, as Major City Goals in the 2019-21 Financial Plan Identified Climate Action, Open Space, and Sustainable Transportation as Major City Goals in the 2021-23 Financial Plan Updated the Water and Wastewater Element of the General Plan to include climate change impacts to water supply projections Lead by Example: A Plan for Carbon Neutral City Operations Lead by Example provides goals, objectives, and actions for each emissions sector will allow the City to accomplish Council's goal of carbon neutrality by 2030. It also lays the foundation for further strategic planning over the next nine years as new best practices emerge and market conditions change to support actions that are currently infeasible. While the plan is centered around reducing operational greenhouse gas emissions from the City, it also focuses on using resources more effectively, orienting the organization to thrive and provide excellent community services in a rapidly changing climate, accessing funding opportunities, and improving employee well-being. Page 731 of 847 Item 6b This section describes the emissions sectors included in Lead by Example, the organization of the planning document, the approach staff took to develop Lead by Example, the greenhouse gas emissions reductions estimates associated with Lead by Example implementation, and areas for improvement for future Lead by Example updates. Greenhouse Gas Emissions Sectors Lead by Example is organized around a total of seven emissions sectors. The sectors broadly encompass the daily business activities undertaken by the City to carry out regular functions. Each sector is described below: 1. Building & Facility Energy — this sector focuses on emissions from energy (electricity and natural gas) used to power buildings, facilities, and equipment owned and operated by the City. 2. Fleet — this sector focuses on emissions from fossil fuel (gasoline and diesel) used in fleet vehicles owned and operated by the City, including maintenance vehicles, buses, fire trucks, and police vehicles. 3. Employee Commute — this sector estimates emissions from vehicle miles traveled (VMT) by employees traveling to and from work. 4. Solid Waste — This sector focuses on emissions from landfilled solid waste, including the paper and food products disposed in offices and landscape maintenance waste. 5. Wastewater — This sector focuses on direct emissions from wastewater treatment processes, specifically methane (CH4) from incomplete combustion of digester gas. Informational GHG emission estimates for Wastewater are included in Attachment C: Greenhouse Gas Emission Inventory and Forecast Report. but are not included in the total GHG emissions for the baseline, inventoried, or forecast year(s). Energy use from wastewater treatment processes is included in the Building & Facility Energy sector. 6. Natural Solutions — This sector focuses on emissions offsets from carbon sequestration activities, including tree planting and carbon farming. The Natural Solutions sector is not included in the GHG emissions inventory for baseline year 2005 or inventory year 2019 because it is not considered an emissions source and sequestration activities 7. are to be initiated after Lead by Example adoption. However, estimates for offsets are included in the Lead by Example GHG emissions forecast. 8. Procurement, Budget, and Finance — This sector is not directly associated with an emissions source. This sector focuses on aligning City financial processes with Council's adopted goal. While purchasing, investments, and other financial activities are associated with indirect GHG emissions, they are not currently quantified in Lead by Example consistent with local government emissions reporting protocols. Page 732 of 847 Item 6b Lead by Example Organization Lead by Example: A Plan for Carbon Neutral City Operations contains four chapters: 1. Chapter 1: Introduction includes highlights of past climate actions and sustainability initiatives completed by the City; reviews Council's goal and it's context in the Climate Action Plan for Community Recovery; provides an overview of staff's approach to the Lead by Example initiative; summarizes the 2005 baseline and 2019 Municipal Greenhouse Gas Emissions Inventories; describes the role of the Green Team; and discusses diversity, equity, and inclusion considerations. 2. Chapter 2: The Path to Carbon Neutrality provides an overview of the City's approach to achieving municipal carbon neutrality. 3. Chapter 3: Carbon Neutral City Operations provides the objectives and actions for each of the seven emissions sectors and includes information about each sector's strategy, goal and objectives, emerging challenges and opportunities, GHG reduction actions grouped by Financial Plan period(s), and a summary of forecasted emissions if the individual sector's actions are implemented. 4. Chapter 4: Achieving Our Goals includes a list of administrative actions to be completed by staff to ensure active and effective implementation of Lead by Example and an implementation matrix that includes all GHG reduction actions for each sector, an extended action description, the department(s) primarily responsible for implementation, and the planned initiation period by Financial Plan(s). Lead by Example Development Process The planning and implementation of Lead by Example occurred over three main phases outlined in Figure 2. As opposed to following the traditional project development approach of planning followed by implementation, staff began by identifying and supporting immediate actions. For example, the Office of Sustainability supported the Fleet Replacement Policy update to include guidance on electric vehicles, initiated conversations with PG&E to explore on -bill financing retrofit opportunities, and helped edit the Lead by Example portions of the Active Transportation Plan concurrent with the development of Lead by Example. Page 733 of 847 Item 6b Figure 2. Lead by Example Planning and Implementation Process Phase I: Immediate Action What can be done now? 4 Phase II: Near Term Action What are priority Financial Plan actions? Phase III: Long Term Planning What long term strategy is needed? PLANNING PROCESS Phase IV: Strategic Action IMPLEMENTATION How do we implement the plan? PROCESS As staff were implementing immediate actions, Phase II was initiated. Staff recognized the importance of integrating Lead by Example work into the 2021-23 Financial Plan to properly allocate staff time and resources, and the Green Team worked together over roughly three workshops to identify priority actions to include in the 2021-23 FP. Staff narrowed actions to those that were considered to be foundational and essential for scaling long-term emission reductions over the next nine years. A combination of capital projects and programs were proposed, including the installation of electric vehicle chargers and solar panels across key facilities and a Building and Facility Energy and Decarbonization Study. Phase III is the final phase of Lead by Example pre -adoption. Following Phase II, the Green Team convened another series of workshops to brainstorm a sector -specific long- term strategy to achieve Council's goal that builds upon actions identified for the 2021-23 Financial Plan. Staff developed a list of actions to be implemented in the 2023-25, 2025- 27, and 2027-29 Financial Plans. Leaving room for uncertainty in market developments and future Lead by Example planning updates as opportunities emerge, the long-term actions create a bridge between now and the 2030 goal and focus on emissions reduction steps that will likely be feasible in the next five to ten years. Lastly, Phase IV is focused on implementing the strategic Lead by Example plan and will be initiated upon adoption. In Phase IV, the Green Team will continue to collaborate around action implementation throughout the 2021-23 Financial Plan period. Ahead of the next Financial Plan period in 2023, staff intend to revisit Phases II through IV with the Green Team to re -align the trajectory towards carbon neutral City operations with emerging best practices and market developments. Page 734 of 847 Item 6b Greenhouse Gas Emissions Reduction Estimates Lead by Example: A Plan for Carbon Neutral City Operations provides GHG reduction estimates as a result of achieving each sector's objectives. Figure 3 shows forecasted municipal operations GHG emissions across three scenarios: business as usual, Lead by Example implementation, and Lead by Example implementation including emissions offsets from the Natural Solutions sector. The Lead by Example GHG reduction quantifications are a result of an exhaustive work effort completed by staff to model expected emissions outcomes following implementation. If objectives are achieved and assumptions that underscore quantification methodology are accurate, full Lead by Example implementation (not taking into account emissions offsets from carbon sequestration activities) will contribute substantial progress towards the operational carbon neutrality goal and achieve GHG reductions of 54 percent below "business as usual" scenario emissions in 2025 and 84 percent below "business as usual" scenario emissions in 2030. The reductions will result in estimated annual remaining GHG emissions of 2,290 MTCO2e in 2025 and 850 MTCO2e in 2030. When taking GHG emissions offsets from carbon sequestration activities in the Natural Solutions sector into account, operational emissions reach net -zero in 2027. While the estimated emissions offsets from the Natural Solutions sector allow the City to technically achieve and surpass carbon neutral City operations ahead of Council's 2030 goal, staff recognize uncertainties surrounding the quantification methodology of carbon sequestration activities. Staff used best available modeling, but local and site -specific conditions can cause actual offset results to vary from estimates. Based on these uncertainties and on Council's intention for the City to lead by example to community partners and peer cities, it is important for the City to continue innovating, learning, and refining its approach in order to lower annual operational GHG emissions to as close to zero as possible. Page 735 of 847 Item 6b 8,000 7,000 6,000 5,000 v N U 4,000 H 3,000 2,000 1,000 Figure 3. Forecasted Municipal Operations GHG Emissions 2005 2010 2015 2020 2025 2030 Year t Business as Usual Forecast (MTCO2e) Reduction Measure Forecast without Natural Solutions (MTCO2e) • Reduction Measure Forecast with Natural Solutions (MTCO2e) 2035 Administrative Actions In addition to actions aimed at reducing operational greenhouse gas emissions, Lead by Example also includes a series of administrative actions: 1. Administrative Action 1: Lead by Example Update. The City will update Lead by Example every four years (concurrent with every other Financial Plan). The City will synch the update with the Community Plan so that each plan is updated in an alternating fashion concurrent with every Financial Plan. 2. Administrative Action 2: Plan Monitoring and Reporting. The City will monitor and report implementation to City Council on a regular basis. Previous Council or Advisory Body Action City Council adopted the Climate Action Plan for Community Recovery (CAP) in August of 2020. The CAP includes the goal of carbon neutral municipal operations by 2030 and direction to develop a plan by summer of 2021 to achieve this goal. Public Engagement Staff facilitated a variety of engagement activities and events both internally and externally. This section provides an overview of the main outreach conducted by staff to support Lead by Example. Page 736 of 847 Item 6b Green Team The Green Team is a cross -departmental collaborative body of staff that have been re- convened to help guide the City's approach to achieving carbon neutral City operations. Originally formed during the 2017-19 Financial Plan, the group was recommitted to in the 2021-23 Financial Plan to support the development and implementation of Lead by Example. The intent of the updated Green Team was to ensure staff from each department participated in the planning and implementation of emissions reduction measures to achieve a truly all -City approach to municipal carbon neutrality. The Green Team was further divided into individual working groups based on each emissions sector. The objectives of the Green Team are to: 1. Cultivate an educated core group of staff that understand how their department's operations contribute to the City's overall GHG emissions and, in turn, recognize opportunities for emission reductions 2. Build capacity within the organization to lead by example by developing and implementing emissions reduction measures and supporting key technical tasks 3. Maximize opportunities for partnership between departments to share responsibilities and take action 4. Establish a foundation for ongoing employee education and outreach on municipal carbon neutrality In September 2020, Office of Sustainability Staff coordinated with the Department Head Leadership Team to identify staff that would participate in the Green Team. It was critical that staff whose primary duties and workplans directly involve or relate to the emissions sectors joined, and that each working group represented the diverse array of relevant departments within the agency. The following is a list of participants broken down by Green Team working group: 1. Building and Facility Energy — Greg Cruce, Alejandro Hernandez, and Brian Lindsey (Public Works); Jennifer Metz and Cori Burnett (Utilities); Devin Hyfield (Parks and Recreation) 2. Fleet — Chris Felt, Gamaliel Anguiano, Gaven Hussey (Public Works) 3. Employee Commute — Adam Fukushima (Public Works); Sharon Seitz (Human Resources) 4. Solid Waste — Jordan Lane and Jennifer Metz (Utilities); Greg Cruce (Public Works) 5. Wastewater— Jennifer Metz and Cori Burnett (Utilities); Greg Cruce and Brian Lindsey (Public Works) 6. Procurement, Budget, and Finance — Dan Clancy and Natalie Harnett (Finance); Miguel Guardado (Information Technology) Staff have convened four full Green Team meetings and 24 working group meetings, three for each working group. During each full -team and working group meeting, staff aimed to maximize the opportunity to collaborate and do work. To prepare, staff utilized pre -meeting questionnaires and created activities to ensure each meeting was an effective use of time. Page 737 of 847 Item 6b During these activities, participants were able to articulate current departmental priorities, identify relevant and current work efforts in need of immediate support, and brainstorm pathways to carbon neutral City operations. Outside of meetings, Green Team facilitators would execute on identified priority tasks, summarize and refine ideas generated within the meetings, and engage in technical work for Lead by Example to maintain forward progress. Following Lead by Example adoption, staff intend to continue utilizing the Green Team to collaborate around equity and resilience in implementation. Diversity, Equity, and Inclusion Committee On Monday, May 3, 2021, Staff facilitated a presentation and interactive discussion with the City's Internal Diversity, Equity, and Inclusion (DEI) Committee. Staff framed the presentation and discussion around the way DEI was currently integrated and reflected in Lead by Example, the present equity nexus between DEI and the substantive aspects of pursuing carbon neutral City operations, and opportunities for staff to pursue a more equitable planning process in the future. Through the discussion, staff were able to collect thoughtful feedback from the committee to develop the following set of DEI-related actions staff are committed to taking throughout the implementation of Lead by Example and future planning updates: 1. Staff will develop an employee outreach and education program to share accessible information about Lead by Example and Council's operational carbon neutrality goal to staff outside of the Green Team. 2. Staff will facilitate employee feedback sessions to continue exploring opportunities and challenges in integrating and addressing diversity, equity, and inclusion through the work. 3. A DEI committee member will be invited to join Green Team meetings quarterly to facilitate collaboration around diversity, equity, and inclusion in Lead by Example implementation. 4. Staff will integrate diversity, equity, and inclusion at the initial stages of the next Lead by Example update in 2023 and intend to collaborate with the DEI committee throughout the planning process. SLO Climate Coalition On Thursday, May 20, 2021, staff facilitated a presentation and interactive discussion with the San Luis Obispo Climate Coalition. Staff framed the presentation and discussion around the City's approach to reducing greenhouse gas emissions across operational activities and how the City can engage the community on the initiative throughout implementation. Attendants of the presentation provided valuable feedback on opportunities to connect with peer organizations in the community that staff will consider when moving into post -adoption engagement. Page 738 of 847 Item 6b Chamber of Commerce On Tuesday, May 25, 2021, staff facilitated a presentation and interactive discussion with the San Luis Obispo Chamber of Commerce Business and Economic Council. Staff framed the presentation and discussion around the City's approach to reducing greenhouse gas emissions across operational activities, how and in what circumstances that approach is applicable to local businesses, and the kinds of steps businesses can take to reduce emissions, advance sustainability, and be a community leader in the climate action space. Attendants of the presentation provided valuable feedback on opportunities to connect with local businesses that staff will consider when moving into post -adoption engagement. CONCURRENCE There is concurrence from the Utilities Department, Public Works Department, Parks and Recreation Department, Information Technology Department, Human Resources Department, and Community Services in the approach to achieving Council's carbon neutral City operations goal outlined in Lead by Example. ENVIRONMENTAL REVIEW Pursuant to the California Environmental Quality Act (CEQA), the City prepared, circulated for public review, and on August 19, 2020 adopted an Initial Study -Negative Declaration (IS/ND) of environmental impact (EID-0275-2020) that addressed the environmental impacts of implementing the City of San Luis Obispo 2020 update to the Climate Action Plan and titled Climate Action Plan for Community Recovery that established a community -wide target of carbon neutrality by 2035, adopted sector specific goals, and provided foundational actions to establish a trajectory towards achieving those goals. The Climate Action Plan for Community Recovery is a Qualified GHG Emissions Reduction Plan to reduce GHG emissions within its jurisdictional boundary to meet and exceed state targets consistent with CEQA Guidelines Section 15183.5 for year 2030 and includes CEQA Greenhouse Gas (GHG) Emissions Thresholds and Guidance. The Lead by Example: Plan for Carbon Neutral City Operations is a measure and supportive action within the scope of the project covered by the already adopted IS/ND for the Climate Action Plan for Community Recovery and includes quantified actions to address emissions that were accounted for in the community inventory and forecast. On the basis of substantial evidence in the light of the whole record, the project does not trigger any of the conditions of CEQA Guidelines § 15162 (subsequent EIRs and negative declarations) as outlined below, no new significant impact on the environment would occur and no new mitigation measures are required, and no further environmental analysis is therefore required: Page 739 of 847 Item 6b • No substantial changes are proposed in the project which will require major revisions of the previously adopted Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified effect; • No substantial changes will occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of an identified effect; • No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous Negative Declaration was adopted, shows that the project will have one or more significant effects not discussed in the previous Negative Declaration or that any previously examined effect would be more severe than shown in the previous Negative Declaration. FISCAL IMPACT Budgeted: Yes Funding Identified: Yes Fiscal Analysis: Budget Year: 2021-22 Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ $ State Federal Fees Other: Total $ $ $ $ No funds are requested at this time. All tasks and work items described in this Council Agenda Report and Attachment A are supported by annual program budget appropriations and have been included in department budget requests for the 2021-23 Financial Plan and departmental work plans. Tasks and work items described in Attachment A that are to be initiated after the 2021-23 Financial Plan will be re-evaluated by staff and if feasible, will be proposed during future Financial Plan periods. Page 740 of 847 Item 6b ALTERNATIVES 1. Council could request more information, suggest substantial changes, or otherwise request that Lead by Example: A Plan for Carbon Neutral City Operations be presented for adoption at a later date. 2. Council could take no action and direct staff to pursue other initiatives. ATTACHMENTS A — Draft Resolution - Approving Lead by Example: A Plan for Carbon Neutral City Operations B — Lead by Example: A Plan for Carbon Neutral City Operations C — Lead by Example Appendix A — GHG Inventory and Forecast Page 741 of 847 Page 742 of 847 RESOLUTION NO. (2021 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING LEAD BY EXAMPLE: A PLAN FOR CARBON NEUTRAL CITY OPERATIONS WHEREAS, greenhouse gas accumulation in the atmosphere as the result of human activity is the primary cause of the global climate crisis; and WHEREAS, in California alone, the initial impacts of climate change have resulted in unpresented disasters with tremendous human, economic, and environmental costs; and WHEREAS, the Intergovernmental Panel on Climate Change estimates that global emissions need to be reduced by 45 percent from 2010 levels by 2030, and 100 percent by 2050 to prevent global catastrophe; and WHEREAS, the State of California enacted Assembly Bill (AB) 32 to require greenhouse gas emissions to be reduced to 40 percent below 1990 levels by 2030 and Governor Brown issued Executive Order B-55-18 establishing a statewide target of carbon neutrality by 2045; and WHEREAS, City of San Luis Obispo residents, businesses, and community partners have repeatedly identified climate action as a top priority; and WHEREAS, in September 2020, the City of San Luis Obispo City Council adopted the Climate Action Plan for Community Recovery via Resolution R-11159 (2020 Series) that, in addition to establishing a pathway to achieve community carbon neutrality by 2035, highlights the role the City can play in "leading by example" and includes a goal of carbon neutral government operations by 2030 and direction to complete a carbon neutral government operations plan by summer 2021; and WHEREAS, the City intends to lead by example and reduce greenhouse gas emissions from municipal operations in order to model the actions needed to reduce community -wide emissions; and WHEREAS, in pursuing a sustainability-oriented approach to achieving carbon neutral government operations by 2030, the City can also promote a more resilient, diverse, equitable, and inclusive City organization; and WHEREAS, a carbon neutral government operations plan has been prepared and titled, Lead by Example: A Plan for Carbon Neutral City Operations (Lead by Example), that establishes sector specific 2030 goals and objectives, and provides actions to establish a trajectory towards achieving those goals and objectives; and IV Page 743 of 847 Resolution No. (2021 Series) Page 2 WHEREAS, the City is committed to sharing resources and lessons learned from Lead by Example implementation with local and regional community members, businesses, organizations, and peer cities; and WHEREAS, Lead by Example is a measure and supportive action within the scope of the project covered by the already adopted Initial Study -Negative Declaration (IS/ND) prepared by the City pursuant to the California Environmental Quality Act (CEQA), circulated for public review, and adopted on August 19, 2020 (EID-0275-2020) that addressed the environmental impacts of implementing the City of San Luis Obispo 2020 update to the Climate Action Plan and titled Climate Action Plan for Community Recovery; and WHEREAS, staff participating in the Green Team from the Public Works, Utilities, Finance, Human Resources, Information Technology, Parks and Recreation, and Administration departments co -created Lead by Example, including the sector goals, objectives, and actions; and WHEREAS, the Green Team worked closely with the Leadership Team to ensure Lead by Example goals, objectives, and actions aligned closely with respective departmental priorities and that all near -term actions to be implemented between 2021- 2023 are budgeted in the 2021-23 Financial Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The recitals set forth above are here by adopted as the findings of the City. SECTION 2. Environmental Review. The Lead by Example. Plan for Carbon Neutral City Operations is a measure and supportive action within the scope of the project covered by the already adopted IS/ND for the Climate Action Plan for Community Recovery (EID-0275-2020) and includes quantified actions to address emissions that were accounted for in the community inventory and forecast. On the basis of substantial evidence in the light of the whole record, the project does not trigger any of the conditions of CEQA Guidelines § 15162 (subsequent EIRs and negative declarations) as outlined below, no new significant impact on the environment would occur and no new mitigation measures are required, and no further environmental analysis is therefore required: • No substantial changes are proposed in the project which will require major revisions of the previously adopted Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified effect; IV Page 744 of 847 Resolution No. (2021 Series) Page 3 • No substantial changes will occur with which the project is undertaken which previous Negative Declaration due to environmental effects or a substantial inc effect; respect to the circumstances under will require major revisions of the the involvement of new significant rease in the severity of an identified • No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous Negative Declaration was adopted, shows that the project will have one or more significant effects not discussed in the previous Negative Declaration or that any previously examined effect would be more severe than shown in the previous Negative Declaration. SECTION 3. Greenhouse Gas Emissions Reduction Targets. The City Council reaffirms carbon neutral government operations by 2030 or sooner as its municipal greenhouse gas emissions reduction target. The City Council also adopts the following 2030 sector specific goals: 1. No fossil fuels are used to power City buildings and facilities. 2. The City eliminates fossil fuel use in vehicle and equipment fleet. 3. City employee commute is aligned with and substantially exceeds General Plan Mode Split Objectives by 2030. 4. City buildings, facilities, and operations are zero waste as defined by the Zero Waste International Alliance (ZWIA). 5. Direct emissions from the provision of wastewater are minimized to the maximum extent feasible. 6. Carbon sequestration within the City's Greenbelt and Urban Forest system is optimized. 7. The City's procurement, budget, investment, and finance processes support and accelerate achieving the City's carbon neutrality goal. IV Page 745 of 847 Resolution No. (2021 Series) Page 4 SECTION 4. Lead By Example: A Plan for Carbon Neutral City Operations. The City Council hereby approves Lead by Example: A Plan for Carbon Neutral City Operations including Technical Appendices. Upon motion of Council Member and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of ATTEST: Teresa Purrington City Clerk APPROVED AS TO FORM- J. Christine Dietrick City Attorney , seconded by Council Member Mayor Heidi Harmon 2021. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on Teresa Purrington City Clerk IV Page 746 of 847 CITY OF SAN LUIS OBISPO F Lead by E A Plan for Carbon Neutral City Operations � Owl' July 2021 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Acknowledgements City Council Mayor Heidi Harmon Vice Mayor Erica A. Stewart Council Member Carlyn Christianson Council Member Jan Marx Council Member Andy Pease City Management Derek Johnson, City Manager Shelly Stanwyck, Assistant City Manager Greg Hermann, Deputy City Manager Green Team Staff Naomi Albert, Gamaliel Anguiano, Cori Burnett, Dan Clancy, Greg Cruce, Chris Felt, Adam Fukushima, Natalie Harnett, Alejandro Hernandez, Robert Hill, Gaven Hussey, Devin Hyfield, Jordan Lane, Brian Lindsey, Teresa McClish, Jennifer Metz, Brian Nelson, Shannon Pressler, Chris Read, Sharon Seitz, Jennifer Thompson, and many others. A Note from the City Manager The City of San Luis Obispo is proud to present Lead by Example: A Plan for Carbon Neutral City Operations. The City as an organization has a long tradition of promoting sustainability across operations and leading by example to community partners. Building on the overwhelming community support for the Climate Action Plan for Community Recovery, Lead by Example sets the City on a trajectory to achieving the ambitious climate target of carbon neutral government operations by 2030. As a trusted community leader, the City has a key role to play in implementing innovative climate actions that reduce greenhouse gas emissions across City operations, create a more resilient and equitable City organization, and are highly replicable. It is important that the City "walk the walk" throughout the transition to a carbon neutral San Luis Obispo, and through the sharing of resources and lessons learned, demonstrate to the community that the City is doing its part. Our actions and commitments demonstrate action, importance, and the need for City leadership in our own operations. Lead by Example was developed with input from staff across City departments and nearly nine months of research and technical work. Now that the City is preparing to implement Lead by Example, we will need to carry on the tradition of sustainability throughout the organization, invest in meaningful climate action while exploring emerging opportunities, and continue to amplify this work throughout the community. As an organization, we boldly embrace this challenge and look forward to making progress alongside the community. I look forward to seeing our team and community come together to fight the climate crisis and our leadership can and will make a difference. Derek Johnson City Manager, City of San Luis Obispo Page 748 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE TABLE OF CONTENTS 1. Introduction............................................................................................................................ 1 2. The Path to Carbon Neutrality................................................................................................ 7 3. Carbon Neutral City Operations............................................................................................11 Building & Facility Energy......................................................................................................12 Fleet......................................................................................................................................15 EmployeeCommute..............................................................................................................18 SolidWaste...........................................................................................................................21 Wastewater........................................................................................................................... 24 Procurement, Budget, and Finance.......................................................................................26 NaturalSolutions...................................................................................................................29 4. Achieving Our Goals.............................................................................................................33 Page 749 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Page 750 of 847 :l*]III [y1[• The City has a long history of supporting environmental stewardship through its operations, with actions ranging from solar panel installations to conserving open space; from cutting -edge energy and chemical management innovations at the Water Treatment Plan and Water Resource Recovery Facility to divesting from fossil fuel investments. A partial list of recent greenhouse gas (GHG) emissions reductions and sustainability actions include: • Conserved over 3,000 acres of open space lands since 2005, and over 7,800 acres since the inception of the Greenbelt Protection Program • Installed solar powered electric vehicle chargers at City Hall • Purchased two electric buses • Retrofitted streetlights with high -efficiency LED bulbs • Retrofitted parking garage with high -efficiency LED bulbs • Retrofitted the Water Resource Recovery Facility for energy efficiency and installing a digester gas cogeneration engine for energy capture • Supported development of the regional anerobic digester to generate clean power and compost from the City' green waste • Established a Solid Waste and Recycling Section of the Utilities Department • Established the Office of Sustainability in the Administration Department • Purchased hybrid fleet vehicles, electric bicycles for fleet, and transitioning diesel fleet vehicles to renewable diesel • Initiated energy efficiency and energy generation project at the Water Treatment Plant • Identified Climate Action as a Major City Goal in each Financial Plan since 2017 • Contracted for new solar generating systems at three facilities In August of 2020, the City of San Luis Obispo City Council adopted the Climate Action Plan for Community Recovery via Resolution R-11159 (2020 Series). While the Climate Action Plan for Community Recovery is primarily focused on community emissions, it also highlights the role the City as an organization can play in "leading by example" and establishes a goal of carbon neutral municipal operations by 2030. Page 751 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Lead by Example: A Plan for Carbon Neutral Municipal Operations (referred to in this document as "Lead by Example" or "Plan") identifies an approach for achieving this goal. Carbon neutral municipal operations by 2030 is an achievable but ambitious goal that requires nearly all City policy and financial decisions to be aligned and oriented to a low carbon future. With this ambitious goal comes many challenges and opportunities. The City is excited to embrace these challenges and use this opportunity to reassess resource use, innovate to deliver core services that are low carbon, and integrate efforts with ongoing community climate and diversity, equity, and inclusion work, all while providing highly visible examples of this work to the community. Lead by Example Process The planning and implementation of Lead by Example has occurred over three main phases outlined in Figure 1.1. Lead by Example includes the greenhouse gas emissions inventory (summarized in this chapter and provided in full as Appendix A), establishes 2030 greenhouse gas emissions targets per sector, explains how the targets are achievable (summarized in this chapter and provided in full as Appendix B), and includes an action plan with identified actions (Chapter 3). Implementation is the fourth phase following the adoption of this plan, as described in Chapter 4. Figure 1.1. Lead by Example Planning and Implementation Process. Phase I: Immediate Action What can be done now? 4 Phase II: Near Term Action What are priority Financial Plan actions? y Phase III: Long Term Planning PLANNING What long term Strategy is needed? PROCESS y Phase IV: Stra How do we impler 2 Page 752 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Greenhouse Gas Emissions Inventory and Forecast A greenhouse gas (GHG) inventory is an accounting of the GHG emissions that have occurred as the result of activity in a calendar year. For this plan, the GHG inventory measures emissions from activities that are directly related to City operations. The greenhouse gas emissions inventory and related emissions forecasts provide the foundational technical analysis for staff to understand baseline conditions and identify necessary actions to achieve Council's operational carbon neutrality goal. For Lead by Example, the City updated its 2005 municipal operations baseline inventory, completed a 2019 municipal operations inventory, and forecasted emissions for 2025 and 2030. Table 1. provides the emissions inventory and forecast years by emissions sector. The municipal operations inventories and forecasts include emissions estimates for five sectors as outlined in Table 1.1 Each sector uses activity data from City operations to estimate or model GHG emissions: • The Building & Facility Energy sector focuses on emissions from energy (electricity and natural gas) used to power buildings, facilities, and equipment owned and operated by the City. • The Fleet sector focuses on emissions from fossil fuel use (gasoline and diesel) used in fleet vehicles owned and operated by the City, including maintenance vehicles, buses, fire trucks, and police vehicles. • The Employee Commute sector estimates emissions from vehicle miles traveled (VMT) by employees traveling to and from work. • The Solid Waste sector focuses on emissions from landfilled solid waste, including the paper and food products disposed in offices and landscape maintenance waste. • The Wastewater sector focuses on direct emissions from wastewater treatment processes, specifically methane (CH4) from incomplete combustion of digester gas. Informational GHG emission estimates for Wastewater are included in Appendix A. but are not included in the total GHG emissions for the baseline, inventoried, or forecast year(s) due to data and method uncertainty. Energy use from wastewater treatment processes is included in the Building & Facility Energy sector. Table 1.1 Municipal Operations GHG Emissions Inventories and Business as Usual Forecast, 2005-2030 (MTCOze). Sector 2005 2019 2025 2030 % change from baseline in 2030 Building & Facility 3,550 2,130 2,110 2,290 -35.5% Energy Fleet 2,250 2,090 2,130 2,130 -5.3% Employee Commute 810 730 710 610 -24.7% Solid Waste 120 120 120 120 0.0% TOTAL 6,730 5,070 5,070 5,150 -23.5% 3 Page 753 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Carbon Neutral by 2030 The term "carbon neutrality" refers to a state where the total emissions of the inventoried sectors reported in Table 1.1, above, minus emissions captured through carbon sequestration efforts are, at most, zero. To achieve carbon neutral municipal operations, the City will need to pursue all feasible pathways to decarbonize assets, reduce the emissions intensity of daily business activities and workspaces, and empower each department with the tools to operate more efficiently and sustainably. Achieving carbon neutrality is a challenge that will require the City to implement priority near -term actions now and continue to assess the feasibility of new emission reduction measures as they emerge. Achieving municipal carbon neutrality will require support from City Council and staff from all departments. Green Team The Green Team is a cross -departmental collaborative body of staff convened to help guide the City's approach to achieving carbon neutral City operations. The Green Team allows staff from each department to participate in the planning and implementation of emissions reduction measures to achieve a truly all -City approach to municipal carbon neutrality. For Lead by Example, the Green Team was divided into individual working groups based on each emissions sector. The stated and ongoing objectives of the Green Team are to: • Cultivate an educated core group of staff that understand how their department's operations contribute to the City's overall GHG emissions and, in turn, recognize opportunities for emission reductions. • Build capacity within the organization to Lead by Example by developing and implementing emissions reduction measures and supporting key technical tasks. • Maximize opportunities for partnership between departments to share responsibilities and take action. • Establish a foundation for ongoing employee education and outreach on municipal carbon neutrality. Lead by Example has been co -created by the Green Team and reflects the hard work of staff members from throughout different City departments. Diversity, Equity, and Inclusion Diversity, equity, and inclusion are core values for the City of San Luis Obispo. While Lead by Example focuses on GHG emissions and reduction actions related to emissions, opportunities exist to advance diversity, equity, and inclusion throughout the organization and the community. Staff have collaborated with the Green Team and the City's internal Diversity, Equity, and Page 754 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Inclusion (DEI) Committee to develop the following list of actions that staff are committed to throughout the implementation of Lead by Example and during future planning updates: • Staff will develop an employee outreach and education program to share accessible information about Lead by Example and Council's operational carbon neutrality goal to staff outside of the Green Team. • Staff will facilitate employee feedback sessions to continue exploring opportunities and challenges in integrating and addressing diversity, equity, and inclusion through the work. • A DEI committee member will be invited to join Green Team meetings quarterly to facilitate collaboration around diversity, equity, and inclusion in Lead by Example implementation. • Staff will integrate diversity, equity, and inclusion at the initial stages of the next Lead by Example update in 2023 and intend to collaborate with the DEI committee throughout the planning process. Additional information about equity considerations for specific emissions sectors is included in Chapter 3: Carbon Neutral City Operations under "Emerging Issues and Opportunities". 61 Page 755 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Page 756 of 847 :0 IA I MWE90 AIMN:I• The City's Approach to Municipal Carbon Neutrality The City's approach to municipal carbon neutrality is based on the guiding principles and greenhouse gas (GHG) emission inventories and forecasts and staff engagement as described in Chapter 1. The City's approach to municipal carbon neutrality is organized into a total of seven sectors, as shown in figure 2.1, each with a long-term goal and objectives, as well as foundational actions to be initiated or completed by 2023. The Municipal Operations GHG Inventory includes five emissions sectors as mentioned in Chapter 1. Two additional sectors are included in Lead by Example that are not associated with direct GHG emissions for the purposes of the inventory and forecast but play a critical supportive role in the achievement of the City's carbon neutrality goal. The two additional sectors are: • Natural Solutions. This sector captures the GHG emission sequestration activities occurring on City -owned property that could partially offset operational emissions. • Procurement, Budget, and Finance. This sector focuses on aligning the financial processes that are the foundations of City operations with climate action and sustainability.. Estimated Greenhouse Gas Emission Reductions With the support of the Green Team, the City identified a pathway to achieve deep GHG reductions in municipal operations. The City conducted a robust work effort to model and estimate the emissions reductions occurring as the result of implementing Lead by Example. The resulting III Page 757 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE GHG reduction estimates and underlying calculations show that the City can make significant progress toward achieving its goal of carbon neutral municipal operations by 2030. The combined reductions from the Lead by Example sectors and their objectives (not including sequestered emissions from the Natural Solutions sector) are expected to result in a total reduction of 2,780 MTCOze in 2025, or 55 percent below the "business as usual" forecast and 4,300 MTCO2e in 2030, or 84 percent below the business as usual forecast, as shown in Figure 2.2 and Table 2.1. In 2030, not including offset emissions from the Natural Solutions sector, a remaining gap of 850 MTCOze between forecast emissions and carbon neutrality is estimated. Considering offset emissions from the Natural Solutions sector, total emissions are estimated to reach net -zero in 2027 and surpass it thereafter. Figure 2.1. Emission Sectors and Goals. sBuilding & Facility Energy GOAL: The City eliminates fossil fuel use in buildings and facilities. SECTOR 2 1k sEmployee Commute GOAL: City employee commute is aligned with and substantially exceeds General Plan Mode Split Objectives by 2030. SECTOR 4 Im SECTOR 5 ii)._ • - • Natural Solutions GOAL: The City optimizes carbon sequestration within the City's Greenbelt and Urban Forest system. • . Procurement, Budget, & Finance '�►j GOAL: The City supports and accelerates achieving the carbon neutrality goal through procurement, budget, investment, and finance processes. 0 Page 758 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE 8,000 7,000 6,000 5,000 N 4,000 3,000 2,000 1,000 Figure 2.2. Municipal Operations GHG Emissions Forecast, 2005-2030. 2000 2005 2010 2015 2020 2025 2030 2035 Year 0 Business as Usual Forecast (MTCO2e) Reduction Measure Forecast without Natural Solutions (MTCO2e) - & - Reduction Measure Forecast with Natural Solutions (MTCO2e) Table 2.1 GHG Emissions Reduction and Offset Estimates (MTCO2e, 2025 and 2030) Sector 2025 2030 "Business as Usual" Emissions Forecast 5,070 5,150 Building and Facility Energy -1,560 -1,950 Fleet -930 -1,890 Employee Commute -240 -350 Solid Waste -50 -110 Natural Solutions offset -1,790 -2,000 Total Emissions Reductions (without Natural Solutions) -2,780 -4,300 Total Remaining Emissions (without Natural Solutions) 2,290 850 Getting to True Carbon Neutrality Lead by Example's approach to reducing greenhouse gas emissions (not including sequestered emissions from the Natural Solutions sector) leaves approximately 850 MTCO2e in annual emissions in 2030 to reduce or offset to achieve true carbon neutrality. Considering the offset emissions from the Natural Solutions sector, the City is expected to achieve net -zero greenhouse gas emissions in 2027, three years before the City's goal year of 2030. While the estimated offsets Page 759 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE from the Natural Solutions sector technically allow the City to achieve its carbon neutrality goal ahead of schedule, it is necessary to emphasize the present uncertainty around the modeling methodology used to estimate Natural Solutions offsets and the importance of continued action to approach carbon neutrality without offsets. To estimate emissions offsets associated with Natural Solutions, the City used commonly - accepted protocols and modeling equations to estimate offsets as a result of activities on City - owned properties. However, the City has not yet implemented pilot projects and do not yet have site -specific data. The City is committed to fully implementing emissions reduction actions described in Lead by Example and pursuing opportunities for expansion and enhancement as supportive market conditions emerge to continue driving down operational emissions. Both in achieving Council's goal and leading in the community, it is important to continue making progress and engaging in emerging decarbonization activities. As emissions quantification protocols evolve over time and the City explores opportunities to further integrate Scope 3' indirect emissions into future inventories and operations plans, a continued commitment to scaling decarbonization programs and projects will be critical to achieve carbon neutral City operations. The operational activities and sectors that are covered in Lead by Example fall under Scope 1 and 2 emissions, with the exception of Employee Commute, which is considered to be Scope 3. Scope 3 emissions includes all other indirect emissions not covered in Scope 2, such as emissions resulting from the extraction and production of purchased materials and fuels, transport -related activities in vehicles not owned or controlled by the local government (i.e. Employee Commute), outsourced activities, waste disposal, and more. More information can be found at https://ww3.arb.ca.gov/cc/protocols/localgov/pubs/Igo protocol v1 1 2010- 05-03. pdf. 10 Page 760 of 847 •,W4MWI• C U 2 lnkl.�V I I* !offA Each sector's actions present critical next steps in pursuing carbon neutral City operations by 2030. As described in previous chapters, the Green Team has worked closely with departmental staff throughout the City to develop and refine each of the following actions to ensure consistency with Council objectives, feasibility, and equity considerations. This chapter provides an overview of each sector and its goal and objectives, a description of the overall approach to reducing emissions, emerging challenges and opportunities that will guide staff's approach, the actions that will enable the City to achieve the goal and objectives, and an emissions quantification summary. Following best practices, the actions are organized by the Financial Plan period when they are expected to be initiated. Lead by Example includes specific actions to be initiated during the 2021- 23, 2023-25, 2025-27, and 2027-29 Financial Plan periods. Actions are grouped by Financial Plan periods in order to closely align Lead by Example projects and programs with budgeted resources. All actions identified for 2021-23 are included in the 2021-23 Financial Plan adopted on June 1, 2021 or are included in staff work programs. It is important to note that for actions expected to be implemented beyond the 2021-23 Financial Plan, the timelines presented are a best estimate and may change as lessons are learned through Lead by Example implementation. Staff are committed to performing an ongoing re -assessment of the actions necessary to achieve each sector goal and objectives and may recommend new or updated actions and/or changes to the implementation timeline based on feasibility and emerging best practices. 11 Page 761 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Building & Facility Energy Strategy Overview City -owned buildings and facility energy use was the largest contributor to annual municipal greenhouse gas emissions in 2019, accounting for 40 percent of inventoried emissions. The City has historically pursued long-term cost -saving retrofit opportunities on an ad -hoc basis when funding or outside resources allow (e.g., the 2016 replacement of streetlights with high -efficiency LED bulbs). GOAL: The City eliminates fossil fuel use in buildings and facilities. OBJECTIVES: 1. Construct only all -electric new buildings and facilities. 2. Eliminate fossil fuel use to the maximum extent possible in existing buildings and facilities. Lead by Example includes a strategic pathway to identify priority retrofit projects across buildings and facilities, align projects with new and existing funding mechanisms and budget cycles, and initiate retrofits. Due to recent advances in electric high - efficiency appliances and equipment, coupled with the City joining Central Coast Community Energy (3CE), there is an opportunity to transition away from fossil fuels and decarbonize the City's new and existing buildings and facilities. This can be achieved through a two -pronged approach: (1) committing to constructing all -electric new buildings and facilities, and (2) laying out a path for building decarbonization, efficiency, and energy resilience retrofits in existing buildings. Emerging Challenges and Opportunities With recent Public Safety Power Shut -offs (PSPS) experienced across California during the 2019 and 2020 wildfire seasons, it is critical that City buildings and facilities are able to operate in a rapidly changing climate. Additionally, as electric vehicles substantially increase load (and potentially provide mobile storage), electricity pricing shifts to time of use, and the City adds additional generation and storage assets, it will be increasingly complicated to manage onsite energy use for optimal operations, cost, and low emissions. As rapidly decreasing costs in onsite renewable energy systems (like rooftop solar PV arrays) paired with battery storage, the City has an opportunity to gain greater energy independence and enhance the resilience of facilities. Staff commit to continue considering these emerging issues and integrating feasible solutions into this sector's long-term strategic approach. 12 Page 762 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE GHG Reduction Actions Table 3.1 shows the reduction measure actions developed by the Green Team for the Building and Facility Energy sector. The table includes immediate actions that were completed during Phase I of the Lead by Example planning and implementation process as well as those near and long-term actions collaboratively developed with the Green Team. All actions within the 2021-23 Financial Plan period are currently budgeted or scheduled and do not represent additional work tasks. Chapter 4 provides additional implementation information, including responsible departments. Table 3.1. Building and Facility energy GHG reduction actions. ReductionStatus GIHIG ■ Energy Immediate Action 1 Initiate conversations with PG&E and The Energy Network to explore on -bill financing opportunities for City buildings and facilities. o Energy Immediate Action 2 Review and propose edits for lawn & garden Request for U Proposals Energy 1.1 Initiate and complete Energy Master Plan to develop the approach to decarbonization, comprehensive energy management, and efficiency across buildings and facilities. Energy 1.2 Complete On -Bill Financing Projects to retrofit buildings and facilities. Energy 1.3 Complete solar projects at SLO Swim Center, Transit Yard, and Fire Station 1 to offset energy use at key facilities. U_ Energy 1.4 Complete battery storage project at the Water Treatment Plant to promote N resilience against power failure. Energy 1.5 Continue ongoing and strategic efficiency improvements to advance the o goal and objectives for the Energy sector. Energy 1.6 Develop and pilot an energy monitoring and management dashboard for Utilities Department to identify additional areas for efficiency improvements and quantify the impact of existing and future actions and consider scaling after pilot phase. Energy 1.7 Identify low or no cost energy efficiency improvements at the Wastewater Resource Recovery Facility (WRRF) through ongoing participation in energy efficiency studies with PG&E to reduce energy demand and emissions for one of the City's largest energy -consuming facilities. Energy 2.1 Initiate implementation of Energy Master Plan, continue priority retrofits, and initiate hard -to -reach retrofits to advance decarbonization and energy a_ management across buildings and facilities. LL N Energy 2.2 Continue funding building retrofits and identifying and pursuing innovative co funding and financing mechanisms such as on -bill financing. N CD Energy 2.3 Procure and manage facility -wide energy management software and consider supportive staffing to target opportunities for retrofits and other energy efficiency measures. Page 763 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Status GHG Reduction Action Energy 2.4 "Opt -up" to Central Coast Community Energy (3CE) Prime to receive 100% renewable energy. Energy 3.1 Continue implementing Energy Master Plan and continue hard -to -reach N U- retrofits to advance energy efficiency across buildings and facilities. N N N Energy 3.2 Continue funding building retrofits and identifying and pursuing innovative funding and financing mechanisms such as on -bill financing. Sector Emissions The Building & Facility Energy sector focuses on emissions from energy (electricity and natural gas) used in buildings and facilities owned and operated by the City. Figure 3.1 shows the business as usual scenario for municipal building and facility energy emissions compared to forecasted emissions as a result of implementing the sector's emission reduction actions, described in the previous section. In 2025, Building and Facility Energy emissions are expected to decrease by 1,560 MTCO2e relative to "business as usual", or approximately 74 percent. In 2030, emissions are expected to decrease by 1,950 MTCO2e relative to "business as usual", or approximately 85 percent. 2,500 2,000 ca) 1,500 O U H 2 1,000 500 Figure 3.1. Building and Facility Energy forecasted emissions. 2018 2020 2022 2024 2026 2028 2030 2032 Year Reduction Measure Forecast (MTCO2e) Business as Usual Forecast (MTCO2e) 14 Page 764 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Fleet Strategy Overview Fleet is the second-largest contributor to annual municipal greenhouse gas emissions, creating approximately 39 percent of overall emissions. It is necessary for the City to pursue a phased transition to GOAL: The City eliminates fossil fuel use in vehicle and equipment fleet. OBJECTIVES: an electrified fleet (including transit) to achieve 1. Achieve 100% all -electric light emissions reductions in this sector. duty vehicles, excluding long - range and certain public safety Lead by Example includes a strategic pathway to vehicles. identify priority electrification opportunities across the 2. Achieve 50% zero emissions City's fleet, align fleet replacement and purchase medium and heavy-duty vehicles. policies with the carbon neutrality goal, assess 3. Achieve 100% all -electric transit charging capacity and needs, and identify external fleet. funding opportunities to support the transition. By 4. Achieve 100% all -electric enhancing charging capacity across key City facilities equipment, excluding certain via grants and partnerships, integrating EV-related heavy-duty equipment, pumps, objectives in procurement policies, accelerating and and backup generators. supporting the Transit Electrification Strategy, and exploring alternate modes for in -town travel, the City will be prepared to accommodate a growing EV fleet while driving down emissions across the sector. Emerging Challenges and Opportunities Reducing emissions in the Fleet sector is particularly challenging for medium and heavy-duty fleet vehicles, off -road equipment, and the increasing need for diesel -powered backup generators. This is especially true in divisions with medium and heavy-duty vehicles, including Public Works: Streets, Utilities, Parks and Recreation, Police, and Fire. While there are many price and performance -comparable options for light -duty vehicles, there is not currently a robust market for large trucks and maintenance equipment powered by electricity, hydrogen, or other alternative zero -emissions fuels. The inventoried Fleet sector also includes diesel used to power backup generation systems. Diesel used for backup power generation presents a particularly difficult fossil fuel source to decarbonize, as the need for reliable and accessible secondary power is essential to maintain critical services during times of crisis. Staff have designed the Fleet emissions reduction strategy to reflect market uncertainty and integrated an action to lay the foundations for a hard -to -reach fleet vehicle transition once technology and cost-effectiveness allow. 15 Page 765 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE GHG Reduction Actions Table 3.2 shows the reduction measure actions developed by staff for the Fleet sector. The table includes immediate actions that were completed during Phase I of the Lead by Example planning and implementation process as well as those near and long-term actions collaboratively developed with the Green Team. All actions within the 2021-23 Financial Plan period are currently budgeted or scheduled and do not represent additional work tasks. Chapter 4 provides additional implementation information, including responsible departments. Table 3.2. Fleet GHG reduction actions. ReductionStatus GHG Fleet Immediate Action 1 Support Fleet Replacement Policy update to include requirements for all -electric light duty fleet vehicles on replacement. 0 E Fleet Immediate Action 2 Research and assess green fleet procurement case studies 0 U Fleet Immediate Action 3 Create GIS layer with locations of fleet parking and existing and planned EV chargers Fleet 1.1 Expand EV charging infrastructure at strategic locations to accommodate a growing EV fleet. 0- Fleet 1.2 Begin priority fleet electrification of light -duty vehicles to initiate the LL transition to a zero -emissions fleet. Fleet 1.3 Continue to research funding sources for charging infrastructure and o monitor best practices for zero emissions medium and heavy-duty vehicles to build N the foundation for a future "hard to reach" fleet transition. Fleet 1.4 Advocate to Central Coast Community Energy (3CE) to fund a fleet electrification plan to advance the goal and objectives of the Fleet sector. Fleet 2.1 Develop and begin implementing landscape management and maintenance equipment transition plan to reduce fossil fuel use in maintenance equipment. Fleet 2.2 Launch landscape management pilot program to explore feasibility and effectiveness of electric landscaping equipment ahead of a broader transition. U_ Fleet 2.3 Expand charging infrastructure for electric landscaping equipment and M other electric/hybrid equipment to accommodate a growing electric equipment fleet. N NFleet 2.4 Explore feasibility of backup power generation transition plan to reduce o fossil fuel use in backup power generation. Fleet 2.5 Develop onsite solar offsets for charging needs to prevent increased energy demand and subsequent electricity purchases. Fleet 2.6 Develop plan for charging `hard to electrify" light duty vehicles (e.g., police cruisers), medium duty vehicles, and heavy-duty vehicles and install infrastructure as feasible. N ti ti Fleet 3.1 Implement landscape management and maintenance equipment transition N `�' �' plan to advance the goal and objectives of the Fleet sector. Page 766 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Status GHG Reduction Action Fleet 3.2 Initiate backup power generation transition plan to advance the goal and objectives of the Fleet sector. tin U_ 6 N Fleet 3.3 Begin or continue transition to zero emissions medium and heavy-duty fleet o vehicles to support the goal and objectives of the Fleet sector. N N Fleet 3.4 Procure vehicles for Police Department as identified in the FY 2025-26 Capital Improvement Project Budget to support the goal and objectives of the Fleet sector. Sector Emissions The Fleet sector focuses on emissions from fossil fuel use (gasoline and diesel) used to power on -road vehicles and maintenance equipment owned and operated by the City. Figure 3.2 shows the business -as -usual scenario for municipal fleet emissions compared to forecasted emissions as a result of implementing the sector's emission reduction actions, described in the previous section. Please note that the Lead by Example implementation forecast is based on the assumption that the City implements the Building & Facility Energy action 2.4, in which the City will opt -up to Central Coast Community Energy (3CE) Prime. In 2025, Fleet emissions are expected to decrease by 930 MTCO2e relative to "business as usual", or approximately 44 percent. In 2030, emissions are expected to decrease by 1,890 MTCO2e relative to "business as usual", or approximately 89 percent. 2,500 2,000 0. 0 1,500 0 U 1,000 KII17 Figure 3.2. Fleet forecasted emissions. 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year Reduction Measure Forecast (MTCO2e) Business as Usual Forecast (MTCO2e) 17 Page 767 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Employee Commute Strategy Overview Single -occupancy transportation represents one of the largest community emissions sources in San Luis Obispo and the State of California. While employee commute for only represents approximately 13 percent of annual municipal operations emissions, the sector is highly visible and successful program implementation at the City could be transferable to businesses and other organizations in the community. For example, in 1998 the City initiated the Trip Reduction Incentive Program (TRIP) to help employees track their commute and receive incentives for taking less polluting commute options, which inspired other regional organizations to take similar actions.. GOAL: City employee commute is aligned with and substantially exceeds General Plan Mode Split Objectives by 2030. OBJECTIVES: 1. Reduce single -occupancy commute miles 25% by 2025, 50% by 2030. 2. Of the remaining single - occupancy commute miles, achieve 25% via electric vehicle by 2025, 50% via electric vehicle Lead by Example includes a strategic pathway to identify by 2030. opportunities to enhance and expand the TRIP program, leverage updated work -from -home policies to tailor new and existing commute reduction initiatives, and pursue partnerships to develop innovative mobility platforms. By building on evolving practices for employee tele-work and tailoring programs to encourage alternative transportation when commute is necessary, the City can achieve substantial reductions in commute vehicle miles traveled and related emissions. Emerging Challenges and Opportunities The Employee Commute sector is a challenging, yet critical aspect of annual municipal GHG emissions. Staff that live within and outside of San Luis Obispo overwhelmingly rely on single - occupancy vehicle travel to report to work. This pattern can be attributed to the relatively far distance between home and work for many out-of-town employees due to higher housing costs in San Luis Obispo, the convenience of driving compared to other modes, perceived safety compared to other modes, and cultural norms. Meaningful changes to the vehicle miles travelled and commute mode chosen by employees will largely be based on behavioral change, over which the City is able to exercise limited policy and program influence. Additionally, while the COVID- 19 pandemic has drastically reduced the number of employees physically reporting to work in 2020 and 2021, it is assumed that the transition back to in -person work could result in "business - as -usual" commute habits. In the commute emissions reduction strategy, staff are committed to utilizing equity -focused incentives to encourage City employees to choose alternate modes and reduce overall vehicle miles traveled. Work with staff in the Human Resources department will inform the planning process to develop updated, long-term work -from -home policies that will allow flexibility for employees to work remotely. Page 768 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE GHG Reduction Actions Table 3.3 shows the reduction measure actions developed by staff for the Employee Commute sector. The table includes immediate actions that were completed during Phase I of the Lead by Example planning and implementation process as well as those near and long-term actions collaboratively developed by the Green Team. All actions within the 2021-23 Financial Plan period are currently budgeted or scheduled and do not represent additional work tasks. Chapter 4 provides additional implementation information, including responsible departments. Table 3.3. Employee Commute GHG reduction actions. Reduction Commute Immediate Action 1 Integrate "Lead by Example" into the Active Transportation Plan. E Commute Immediate Action 2 Facilitate an initial meeting with San Luis Obispo U Council of Governments (SLOCOG) to expand iRideshare capabilities and leverage "mobility as a service" for employee commute objectives. Commute 1.1 Leverage updated work from home policies to provide VMT and provide additional incentives for alternative transportation for field workers and shift workers. Commute 1.2 Update TRIP program to reflect current Council priorities and contemporary issues such as work from home, DEI, and electric vehicles. Commute 1.3 Develop trip reduction program to show that the City holds itself to the n LL same standards as current development and to reduce vehicle miles travelled. co N Commute 1.4 Launch programs to increase employee access to bicycles (e.g., N employee bike loan program). Commute 1.5 Enhance/expand bus pass access to encourage alternate, low -carbon transportation for commute purposes. Commute 1.6 Explore mobility -as -a -service to connect employees with alternate, low - carbon transportation for commute purposes. Commute 1.7 Establish electric vehicle charging policy for personal vehicles at City parking spaces to encourage use of EV's for commute purposes. n LL N Commute 2.1 Enhance access to trip reduction incentives for out-of-town employees Nto equitably advance the goal and objectives of the Employee Commute sector. 0 N n rnCommute 2.2 Evaluate staff commute habits and reevaluate strategic approach to achieving sector objectives. CD� N N Page 769 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Sector Emissions The Employee Commute sector focuses on emissions from vehicle miles travelled (VMT) used by City employees to travel to and from work. Figure 3.3 shows the business as usual scenario for employee commute emissions compared to forecasted emissions as a result of implementing the sector's emission reduction actions, described in the previous section. In 2025, Employee Commute emissions are expected to decrease by 240 MTCO2e relative to "business as usual", or approximately 34 percent. In 2030, emissions are expected to decrease by 350 MTCO2e relative to "business as usual", or approximately 57 percent. 800 700 600 500 N 400 300 200 100 Figure 3.3. Employee Commute forecasted emissions. I 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year Reduction Measure Forecast (MTCO2e) Business as Usual Forecast (MTCO2e) 20 Page 770 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Solid Waste Strategy Overview City facilities and operations produce a considerable volume GOAL: City buildings, facilities, of annual solid waste, totaling about 280 tons in 2019. In and operations are zero waste as terms of municipal operations GHG emissions, Solid Waste defined by the Zero Waste represents approximately two percent of total emissions. International Alliance (ZWIA). However, similar to Employee Commute, the Solid Waste OBJECTIVES: sector presents an opportunity to develop and pilot waste reduction programs and capital projects that can be 1. Achieve 90% reduction in modeled by businesses and other organizations in the landscape waste. community. The City has historically implemented 2. Achieve 90% reduction in operations -based waste reduction policies consistent with office -based operation state law and launched in -office programs that coincide with waste. community programs, like the distribution of green waste bins across the organization. The Utilities department is in a unique position to utilize its existing partnership with the Integrated Waste Management Authority (IWMA) to scale community -based waste reduction initiatives for municipal use. Lead by Example includes a strategic pathway to identify opportunities to enhance and expand current waste reduction programs and policies through a waste reduction plan. By implementing waste -reduction measures across City buildings and facilities and pursuing zero - waste operations, the City can save money, cut emissions, and Lead by Example.2 Emerging Challenges and Opportunities Pursuing zero -waste operations poses various challenges and uncertainties. Notably, reducing office -based waste is largely dependent on individual employee behavior. Even after the infrastructure and policies are in place, employees must dispose of waste in the correct bin, follow best practices, and develop new habits. This reality makes employee buy -in and education a critical component of achieving our waste objectives. The pathway to reducing waste will largely depend on the findings and recommendations of the Municipal Waste Reduction Plan and Characterization Study (to be developed in FY 21-23). While any waste diverted from a landfill is a success, reducing consumption first is the best approach to minimize issues such as recycling contamination and green waste bin under -utilization. 2 The Zero Waste International Alliance (ZWIA) defines "zero waste" as "the conservation of all resources by means of responsible production, consumption, reuse, and recovery of products, packaging, and materials without burning and with no discharges to land, water, or air that threaten the environment or human health." Lead by Example operationalizes this as a 90% reduction in landfilled waste. 21 Page 771 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE GHG Reduction Actions Table 3.4 shows the reduction measure actions developed by staff for the Solid Waste sector. The table includes immediate actions that were completed during Phase I of the Lead by Example planning and implementation process as well as those near and long-term actions collaboratively developed with the Green Team. All actions within the 2021-23 Financial Plan period are currently budgeted or scheduled and do not represent additional work tasks. Chapter 4 provides additional implementation information, including responsible departments. Table 3.4. Solid Waste GHG reduction actions. ReductionStatus� GHG 2 Waste Immediate Action 1 Research and assess solution case studies for recycling E contamination in public spaces. 0 U Waste 1.1 Hire a CivicSpark Fellow to support municipal zero waste goal. Waste 1.2 Develop a Municipal Waste Reduction Plan & conduct municipal waste characterization study to frame an approach to operations -wide solid waste reduction. a Waste 1.3 Adopt waste reduction and diversion ordinances to ensure consistency with N ordinance directives from the Integrated Waste Management Authority. Waste 1.4 Survey office space throughout the City and assess opportunities to optimize waste reduction through the TRUE certification program. Waste 1.5 Develop & implement paper -free workplace policy to reduce paper waste in office -based operations. Waste 1.6 Initiate project to right -size existing waste bins to encourage appropriate waste disposal across offices. LO o_ Waste 2.1 Implement Municipal Waste Reduction Plan to support the goal and 0 11 objectives of the Solid Waste sector. N n rn Waste 3.1 Continue implementing Municipal Waste Reduction Plan to support the No c� goal and objectives of the Solid Waste sector. N N Sector Emissions The Solid Waste sector focuses on emissions from solid waste disposal as a result of City operations. Figure 3.4 shows the business as usual scenario for solid waste emissions compared to forecasted emissions as a result of implementing the sector's emission reduction actions, Page 772 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE described in the previous section. In 2025, Solid Waste emissions are expected to decrease by 50 MTCO2e relative to "business as usual", or approximately 42 percent. In 2030, emissions are expected to decrease by 110 MTCO2e relative to "business as usual", or approximately 92 percent. 140 120 m 0 80 U 7 60 40 20 Figure 3.4. Solid Waste forecasted emissions. 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Year Reduction Measure Forecast (MTCO2e) tBusiness as Usual Forecast (MTCO2e) 2? Page 773 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Wastewater Strategy Overview The City of San Luis Obispo owns and operates a major GOAL: The City minimizes direct facility responsible for treating wastewater, the Water emissions from the provision of Resource Recovery Facility (WRRF). This facility and its wastewater to the maximum extent processes use a significant amount of energy to power feasible. equipment. Additionally, the WRRF is a source of direct emissions in the form of biogas, which is a byproduct of the wastewater treatment process. Operations at the WRRF are highly regulated and opportunities to reduce emissions and enhance energy efficiency are constrained to allowable changes according to the regulatory agencies that oversee wastewater recovery in the State of California and the County of San Luis Obispo. The WRRF is currently undergoing an upgrade project that will replace the use of chemicals for disinfection with UV technology. This project will reduce the negative environmental and embodied GHG emission impacts of industrial chemicals and will result in greater onsite electricity use. Lead by Example includes a strategic pathway to identify opportunities for emissions reduction actions within the existing regulatory framework that the WRRF operates. By strategically pursuing onsite energy generation using digester biogas and exploring pathways to utilize biosolids for local use, the City can capitalize on critical infrastructure in a strict regulatory environment to reduce direct and indirect emissions. Emerging Challenges and Opportunities Wastewater recovery is an essential function of the City. Critical services such as these operate under strict regulatory standards which limit opportunities to pursue energy efficiency and other climate actions. For example, new regulatory standards require the WRRF to phase -out it's chemical disinfection processes and construct a more effective and less environmentally- impactful technology (UV disinfection) that requires greater onsite energy use. By exploring the feasibility of further enhancing onsite energy generation via the co -generation system paired with battery storage, the City can potentially offset these increased energy needs while creating a more resilient system overall. The WRRF is currently partnered with PG&E and the U.S. Department of Energy in exploring opportunities for additional efficiency measures, including the expansion of onsite energy production and optimization of existing and future facilities currently under construction. Staff are committed to considering feasible avenues for reducing emissions while maintaining high standards of operation. GHG Reduction Actions Table 3.5 shows the reduction measure actions developed by staff for the Wastewater sector. The table includes immediate actions that were completed during Phase I of the Lead by Example 24 Page 774 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE planning and implementation process as well as those near and long-term actions collaboratively developed with the Green Team. All actions within the 2021-23 Financial Plan period are currently budgeted or scheduled and do not represent additional work tasks. Chapter 4 provides additional implementation information, including responsible departments. Table 3.5. Wastewater GHG reduction actions. ReductionStatus GHG m Wastewater Immediate Action 1 Develop community engagement materials and Q E outreach program for sewer lateral replacement policy. 0 U Wastewater 1.1 Optimize onsite energy generation to reduce external energy demand and subsequent electricity purchases. n coco Wastewater 1.2 Continue to reduce inflow and infiltration into the wastewater N collection system through capital replacement of gravity sewer mains and private N sewer lateral programs, resulting in less wastewater to treat. CD Wastewater 1.3 Evaluate the potential for expanded onsite energy capture and production through an ongoing partnership with the U.S. Department of Energy. Sector Emissions The Wastewater sector focuses on emissions from the wastewater treatment process. The energy used to power the WRRF is included under the Building and Facility Energy sector. GHG emissions estimates included in the 2019 Municipal GHG Inventory and Report are purely informational, as staff are not confident that the calculation methods used are defensible. Page 775 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Procurement, Budget, and Finance Strategy Overview While activities related to Procurement, Purchasing, & Finance are not directly quantified in the Municipal Greenhouse Gas Inventory, this sector is of unique importance due to its nexus with the other sectors. The way the City spends money, by funding internal projects and programs, investing, and entering into vendor contracts has downstream impacts on greenhouse gas emissions. The City has historically integrated climate and sustainability considerations into financial policy on an ad hoc basis per Council direction, like the Municipal Code Environmentally Preferred Purchasing Policy adoption in 1990 (updated in 2015 and 2018). GOAL: The City supports and accelerates achieving the carbon neutrality goal through procurement, budget, investment, and finance processes. OBJECTIVES: 3. Establish sustainability criteria to guide vendor selection and other procurement activities. 4. Establish criteria to guide budget development and selection of CIPs. 5. Achieve 100% ESG investments Lead by Example includes a strategic pathway to across the City's portfolio. identify opportunities to formally integrate climate 6. Establish approach to enhancing considerations across procurement, budgeting, and circularity in City procurement and finance activities and pilot purchasing programs. operations. Integrating climate considerations and priorities into the City's financial operations serves as the foundation for the broader transition to carbon neutral City operations across all sectors. Emerging Challenges and Opportunities Currently, there are not strong case studies for how peer cities formally integrate quantitative climate and sustainability metrics into financial decision -making processes. This space is rapidly emerging as more municipalities aim to align financial policies and procedures with climate goals. Staff have already begun integrating qualitative, high-level considerations and prompts into purchasing and budget approval processes to frame the Council -adopted climate goal in the context of financial activities. Staff are committed to considering opportunities to integrate climate metrics broadly across financial activities and continuing to explore peer city case studies as the emissions reduction strategy is implemented. 26 Page 776 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE GHG Reduction Actions Table 3.8 shows the reduction measure actions developed by staff for the Procurement, Budget, and Finance sector. The table includes immediate actions that were completed during Phase I of the Lead by Example planning and implementation process as well as those near and long-term actions collaboratively developed with the Green Team. These actions are expected to result in indirect emissions reductions and are therefore not included in the GHG emissions forecast. All actions within the 2021-23 Financial Plan period are currently budgeted or scheduled and do not represent additional work tasks. Chapter 4 provides additional implementation information, including responsible departments. Table 3.8. Procurement, Budget, and Finance GHG reduction actions. ReductionStatus GHG Procurement Immediate Action 1 Research and assess case studies on green/sustainable budgeting at the municipal level. _0 Procurement Immediate Action 2 Collect case studies from Green Cities California 2 (GCC) on draft purchase policy update. a o Procurement Immediate Action 3 Adopt new policy focusing budget decisions on v sustainability, resilience, and diversity, equity, and inclusion. Procurement Immediate Action 4 Update capital improvement project (CIP) intake form to include carbon neutrality considerations. Procurement 1.1 Develop and implement Capital Improvement Project (CIP) climate and resilience quantification tool for 2023-25 FP to promote consistency with Council -adopted climate goals for capital projects. Procurement 1.2 Update and advance climate and equity budget approach for n 2023-25 FP to promote consistency with Council -adopted climate goals for budget U_ processes. NProcurement 1.3 Update Environmentally Preferred section of Procurement Policy N and codify in the Municipal Code to reflect broader climate and sustainability CD considerations. Procurement 1.4 Conduct pilot program with IT and consider updating IT strategic plan regarding environmentally preferred equipment to identify/assess challenges and opportunities with sustainable purchasing that can be scaled to other operations and equipment. LO M n Procurement 2.1 Develop and begin implementing Council -adopted sustainability 0 11 criteria for procurement contracts. N N U_ Procurement 3.1 Revisit janitorial contracts (amendment to request for proposal N N template & purchasing policy) to promote consistency with Council -adopted climate N N goals for janitorial products and services. Page 777 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Sector Emissions The Procurement, Budget, and Finance sector is associated with indirect emissions not quantified in the 2019 Municipal GHG Inventory and Report. Any emission reductions that will occur as a result of implementation of emission reduction actions will also fall under indirect emissions and are not currently quantifiable according to the Local Government Operations Protocol. Therefore, staff did not estimate Procurement, Budget, and Finance sector emissions under a "business as usual" or emission reduction measure scenario. The City recognizes the importance of taking action within the sector despite not quantifying emissions, especially given the opportunity to "lead by example" and implement highly replicable and scalable measures. Page 778 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Natural Solutions Strategy Overview The open space lands owned or managed by the City of San Luis Obispo present a significant opportunity to offset operational emissions via soil -based carbon sequestration. Investment in the Urban Forest and carbon farming in the City's Greenbelt can increase soil carbon storage while benefitting the community through the conservation of natural resources, maintenance of ecosystem services, access to passive recreation opportunities, and enhanced climate resilience. Lead by Example includes a strategic pathway to build on Natural Solutions foundational actions detailed in the Climate Action Plan for Community Recovery to grow the City's Greenbelt through conservation easements and property acquisitions, implement targeted "carbon farming" pilot projects, and expand the City's Urban Forest system. The Natural Solutions sector allows the City to demonstrate leadership in this emerging field, support climate resilience, and enhance community well- being. GOAL: The City optimizes carbon sequestration within the City's Greenbelt and Urban Forest system. OBJECTIVES: 1. The City has a healthy multi - benefit Urban Forest system that increases local carbon sequestration. 2. The City open space and Greenbelt support regenerative agricultural practices and are managed to sequester carbon, where appropriate. 3. The City's landscape management practices are climate friendly and utilize compost from the regional anaerobic digester. Emerging Challenges and Opportunities Actions within the Natural Solutions sector need to be responsive to a changing climate. With the frequency and intensity of extreme heat days and wildfire risk expected to increase over time, many areas of San Luis Obispo will be left vulnerable. Specifically, when considering the importance of tree cover to human health in cases of extreme heat, the co -benefits of a more robust urban forest are apparent. Additionally, nature -based approaches to carbon sequestration are a rapidly emerging field. Given uncertainty regarding methodology and the GHG sequestration potential of "carbon farming," the City should remain flexible in pilot project implementation. As the region anticipates more frequent extreme heat days, tree planting will be coordinated to maximize cooling and energy efficiency benefits for the areas of San Luis Obispo with the least tree cover and greatest expected heat intensity. The Urban Forest system expansion strategy also includes considerations for tree species in order to ensure long-term tree success in a changing climate. Staff are committed to being responsive to changing conditions and will continuously seek opportunities to enhance climate adaptation and resilience co -benefits while pursuing carbon sequestration activities. 29 Page 779 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE GHG Reduction Actions Table 3.6 shows the reduction measure actions developed by staff for the Natural Solutions sector. The table includes actions that were included in the Climate Action Plan for Community Recovery and those included in the 2021-23 Financial Plan. All actions within the 2021-23 Financial Plan period are currently budgeted or scheduled and do not represent additional work tasks. Chapter 4 provides additional implementation information, including responsible departments. Table 3.6. Natural Solutions GHG reduction actions. ReductionStatus GHG Natural Solutions 1.1 Prepare the City's first Urban Forest Master Plan, to be brought before City Council in 2022, including a comprehensive update of tree inventory, assessment of tree canopy coverage, and implementation of an ongoing tracking system. Natural Solutions 1.2 Partner with ECOSLO and others in the community to support the 10,000 Trees by 2035 goal through a tree planting and maintenance program. Natural Solutions 1.3 Convene an inter -departmental staff team to assess and provide recommendations for the Urban Forest Program's future role in advancing sustainability goals and objectives. U_ Natural Solutions 1.4 Identify a strategy for a prioritized replacement schedule for N downtown Ficus trees and begin implementation to ensure the long-term preservation of the Downtown street tree canopy. NNatural Solutions 1.5 Develop a "Carbon Farm Plan" for the City's Johnson Ranch Open Space and Calle Joaquin Agricultural Reserve ("City Farm") in 2021 to strategically implement compost application. Natural Solutions 1.6 Begin pilot implementation of compost application and monitoring to implement the Carbon Farm Plans described in 1.5, above, beginning in 2022 to advance carbon sequestration efforts. Natural Solutions 1.7 Actively pursue opportunities to purchase open space lands and permanent land conservation agreements in furtherance of the City's Greenbelt Protection Program. Natural Solutions 1.8 Explore opportunities to utilize regional green waste digester compost for beneficial use across properties and operations. Natural Solutions 2.1 Begin long-term implementation of "Carbon Farming" practices to advance carbon sequestration efforts. n LO Natural Solutions 2.2 Continue planting trees on an annual basis towards the of 10,000 new trees by 2035 pending direction in the Urban Forest Master coobjective N Plan. CD Natural Solutions 2.3 Launch pilot project to strategically phase -in regional green waste digester compost for landscape management operations to promote circularityand advance carbon sequestration efforts. 30 Page 780 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Status GIHIG Reduction Action NNatural Solutions 3.1 Continue planting trees on an annual basis towards the N LL objective of 10,000 new trees by 2035 pending direction in the Urban Forest Master CD N Plan to advance carbon sequestration efforts. Sector Emissions The Natural Solutions sector focuses on emissions reductions as a result of natural carbon sequestration on City -owned properties. Table 3.7 shows the forecasted emissions reductions as a result of implementing the sector's actions, described in the previous section. Table 3.7. Natural Solutions forecasted emissions offsets. Sector 2025 2030 Forecasted Emissions Offsets (MTCO2e) 1,790 2,000 3 Page 781 of 847 Page 782 of 847 CITY OF SAN LUIS OBISPO 4. ACHIEVING OUR GOALS Administrative Actions LEAD BY EXAMPLE In addition to the sector specific actions in Chapter 3, the City commits to the following administrative actions to ensure active and effective implementation of Lead by Example. • Administrative Action 1: Lead by Example Update. The City will update Lead by Example every four years (concurrent with every other Financial Plan). The City will synch the update with the Community Plan so that each plan is updated in an alternating fashion concurrent with every Financial Plan. • Administrative Action 2: Plan Monitoring and Reporting. The City will monitor and report implementation to City Council on a regular basis. Action Implementation Matrix The below table summarizes each action that the City is committed to pursuing as a part of Lead by Example, including the departments responsible for implementing the action and the planned initiation period. Under the Responsible Department(s) column, departments that are bolded are the primary lead for implementation and those that are not bolded have been identified as having a supportive role. ResponsibleAction Description -. Initiation Administrative Actions The City will update Lead by Example every four years Administrative Action 1: (concurrent with every other Financial Plan). The City will Lead by Example Update synch the update with the Community Plan so that each plan Office of Sustainability Ongoing is updated in an alternating fashion concurrent with every Financial Plan. Administrative Action 2: Plan Monitoring and The City will monitor and report implementation to City Council Office of Sustainability Ongoing Reporting on a regular basis. Page 783 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE ResponsibleAction Description .. Energy Energy Immediate Action Initiate conversations with PG&E and The Energy Network to Office of Sustainability, explore on -bill financing opportunities for City buildings and Public Works Completed facilities. Energy Immediate Action Review and propose edits for lawn & garden Request for Office of Sustainability Completed 2 Proposal Initiate and complete Energy Master Plan to develop the Energy 1.1 approach to decarbonization, comprehensive energy Office of Sustainability, 2021-23 management, and efficiency across buildings and facilities. Public Works Energy 1.2 Complete On -Bill Financing Projects to retrofit buildings and Public Works, Office of 2021-23 facilities. Sustainability Energy 1.3 Complete solar projects at SLO Swim Center, Transit Yard, Public Works 2021-23 and Fire Station 1 to offset energy use at key facilities. Energy 1.4 Complete battery storage project at the Water Treatment Plant Utilities 2021-23 to promote resilience against power failure. Energy 1.5 Continue ongoing and strategic efficiency improvements to Public Works, Utilities 2021-23 advance the goal and objectives for the Energy sector. Develop and pilot an energy monitoring and management Energy 1.6 dashboard for Utilities Department to identify additional areas Utilities 2021-23 for efficiency improvements and quantify the impact of existing and future actions and consider scaling after pilot phase. W Page 784 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Description ResponsibleAction . - Initiation -.. Identify low or no cost energy efficiency improvements at the Wastewater Resource Recovery Facility (WRRF) through Energy 1.7 ongoing participation in energy efficiency studies with PG&E to Utilities 2021-23 reduce energy demand and emissions for one of the City's largest energy -consuming facilities. Initiate implementation of Energy Master Plan, continue Energy 2.1 priority retrofits, and initiate hard -to -reach retrofits to advance Public Works, Office of 2023-25 decarbonization and energy management across buildings Sustainability and facilities. Continue funding building retrofits and identifying and pursuing Energy 2.2 innovative funding and financing mechanisms such as on -bill Public Works 2023-25 financing. Procure and manage facility -wide energy management Energy 2.3 software and consider supportive staffing to target Office of Sustainability, 2023-25 opportunities for retrofits and other energy efficiency Public Works, Utilities measures. Energy 2.4 "Opt -up" to Coast Community Energy (3CE) Prime to Office of Sustainability, 2023-25 oCentral receive 100 /o renewable energy. Public Works, Utilities Continue implementing Energy Master Plan and continue Energy 3.1 hard -to -reach retrofits to advance energy efficiency across Public Works 2027-29 buildings and facilities. Continue funding building retrofits and identifying and pursuing Energy 3.2 innovative funding and financing mechanisms such as on -bill Public Works 2027-29 financing. Fleet Support Fleet Replacement Policy update to include Fleet Immediate Action 1 requirements for all -electric light duty fleet vehicles on Office of Sustainability Completed replacement. Fleet Immediate Action 2 Research and assess green fleet procurement case studies Office of Sustainability Completed Page 785 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Action EM .. -. Initiation _M"LDescription -.. Fleet Immediate Action 3 Create GIS layer with locations of fleet parking and existing Office of Sustainability Completed and planned EV chargers Fleet 1.1 Expand EV charging infrastructure at strategic locations to Public Works, Office of 2021-23 accommodate a growing EV fleet. Sustainability Fleet 1.2 Begin priority fleet electrification of light -duty vehicles to initiate Public Works 2021-23 the transition to a zero -emissions fleet. Continue to research funding sources for charging Fleet 1.3 infrastructure and monitor best practices for zero emissions Office of Sustainability, 2021-23 medium and heavy-duty vehicles to build the foundation for a Public Works future "hard to reach" fleet transition. Advocate to Central Coast Community Energy (3CE) to fund a Fleet 1.4 fleet electrification plan to advance the goal and objectives of Office of Sustainability 2021-23 the Fleet sector. Develop and begin implementing landscape management and Public Works, Office of Fleet 2.1 maintenance equipment transition plan to reduce fossil fuel Sustainability 2023-25 use in maintenance equipment. Launch landscape management pilot program to explore Public Works, Office of Fleet 2.2 feasibility and effectiveness of electric landscaping equipment Sustainability 2023-25 ahead of a broader transition. Expand charging infrastructure for electric landscaping Fleet 2.3 equipment and other electric/hybrid equipment to Public Works 2023-25 accommodate a growing electric equipment fleet. Fleet 2.4 Explore feasibility of backup power generation transition plan Office of Sustainability, 2023-25 to reduce fossil fuel use in backup power generation. Public Works Page 786 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Description ResponsibleAction . - Initiation -.. Develop onsite solar offsets for charging needs to prevent Office of Sustainability, Fleet 2.5 increased energy demand and subsequent electricity Public Works 2023-25 purchases. Develop plan for charging `hard to electrify" light duty vehicles Public Works, Office of Fleet 2.6 (e.g., police cruisers), medium duty vehicles, and heavy-duty Sustainability 2023-25 vehicles and install infrastructure as feasible. Implement landscape management and maintenance Public Works, Office of Fleet 3.1 equipment transition plan to advance the goal and objectives Sustainability 2027-29 of the Fleet sector. Fleet 3.2 Initiate backup power generation transition plan to advance Public Works 2027-29 the goal and objectives of the Fleet sector. Begin or continue transition to zero emissions medium and Fleet 3.3 heavy-duty fleet vehicles to support the goal and objectives of Public Works 2025-29 the Fleet sector. Procure vehicles for Police Department as identified in the FY Fleet 3.4 2025-26 Capital Improvement Project Budget to support the Public Works 2025-29 goal and objectives of the Fleet sector. Commute Commute Immediate Integrate "Lead by Example" into the Active Transportation Office of Sustainability Completed Action 1 Plan. Facilitate initial meeting with San Luis Obispo Council of Commute Immediate Governments (SLOCOG) to expand iRideshare capabilities "mobility Office of Sustainability Completed Action 2 and leverage as a service" for employee commute objectives. Page 787 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Description ResponsibleAction .. Leverage updated work from home policies to provide VMT Human Resources, Office Commute 1.1 and provide additional incentives for alternative transportation of Sustainability 2021-23 for field workers and shift workers. Update TRIP program to reflect current Council priorities and Human Resources, Office Commute 1.2 contemporary issues such as work from home, DEI, and of Sustainability, Public 2021-23 electric vehicles. Works Develop trip reduction program to show that the City holds Public Works, Office of Commute 1.3 itself to the same standards as current development and to Sustainability 2021-23 reduce vehicle miles travelled. Commute 1.4 Launch programs to increase employee access to bicycles Office of Sustainability, 2021-23 (e.g., employee bike loan program). Public Works, Finance Commute 1.5 Enhance/expand bus pass access to encourage alternate, Public Works 2021-23 low -carbon transportation for commute purposes. Commute 1.6 Explore mobility -as -a -service to connect employees with Office of Sustainability, 2021-23 alternate, low -carbon transportation for commute purposes. Public Works Establish electric vehicle charging policy for personal vehicles Public Works, Office of Commute 1.7 at City parking spaces to encourage use of EV's for commute Sustainability, Finance 2021-23 purposes. Enhance access to trip reduction incentives for out-of-town Human Resources, Office Commute 2.1 employees to equitably advance the goal and objectives of the of Sustainability, Public 2023-25 Employee Commute sector. Works Evaluate staff commute habits and reevaluate strategic Human Resources, Office 2023-25 Commute 2.2 approach to achieving sector objectives. of Sustainability, Public Works Solid Waste Waste Immediate Action 1 Research and assess solution case studies for recycling Office of Sustainability Completed contamination in public spaces. Waste 1.1 Hire a CivicSpark Fellow to support municipal zero waste goal. Utilities 2021-23 is Page 788 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Description ResponsibleAction .. Develop a Municipal Waste Reduction Plan & conduct Waste 1.2 municipal waste characterization study to frame an approach Utilities 2021-23 to operations -wide solid waste reduction. Adopt waste reduction and diversion ordinances to ensure Waste 1.3 consistency with ordinance directives from the Integrated Utilities 2021-23 Waste Management Authority. Survey office space throughout the City and assess Waste 1.4 opportunities to optimize waste reduction through the TRUE Utilities 2021-23 certification program. Waste 1.5 Develop & implement paper -free workplace policy to reduce Utilities 2021-23 paper waste in office -based operations. Waste 1.6 Initiate project to right -size existing waste bins to encourage Utilities 2021-23 appropriate waste disposal across offices. Waste 2.1 Implement Municipal Waste Reduction Plan to support the Utilities 2023-25 goal and objectives of the Solid Waste sector. Waste 3.1 Continue implementing Municipal Waste Reduction Plan to Utilities 2027-29 support the goal and objectives of the Solid Waste sector. Wastewater Wastewater Immediate Develop community engagement materials and outreach Utilities, Office of Completed Action 1 program for sewer lateral replacement policy. Sustainability Wastewater 1.1 Optimize onsite energy generation to reduce external energy Utilities 2021-23 demand and subsequent electricity purchases. W Page 789 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Action Description ' Responsible Planned Initiation -.. Continue to reduce inflow and infiltration into the wastewater Wastewater 1.2 collection system through capital replacement of gravity sewer Utilities 2021-23 mains and private sewer lateral programs, resulting in less wastewater to treat. Evaluate the potential for expanded onsite energy capture and Wastewater 1.3 production through an ongoing partnership with the U.S. Utilities 2021-23 Department of Energy. Procurement Procurement Immediate Research and assess case studies on green/sustainable Office of Sustainability Completed Action 1 budgeting at municipal level. Procurement Immediate Collect case studies from Green Cities California (GCC) on Office of Sustainability Completed Action 2 draft purchase policy update. Procurement Immediate Adopt new policy focusing budget decisions on sustainability, Office of Sustainability Completed Action 3 resilience, and diversity, equity, and inclusion. Procurement Immediate Update capital improvement project (CIP) intake form to Office of Sustainability Completed Action 4 include carbon neutrality considerations. Develop and implement Capital Improvement Project (CIP) Procurement 1.1 climate and resilience quantification tool for 2023-25 FP to Office of Sustainability, 2021-23 promote consistency with Council -adopted climate goals for Finance, Public Works capital projects. Page 790 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Description ResponsibleAction .. Update and advance climate and equity budget approach for Office of Sustainability, Procurement 1.2 2023-25 FP to promote consistency with Council -adopted Finance 2021-23 climate goals for budget processes. Update Environmentally Preferred section of Procurement Finance, Office of Procurement 1.3 Policy and codify in the Municipal Code to reflect broader Sustainability 2021-23 climate and sustainability considerations. Conduct pilot program with IT and consider updating IT strategic plan regarding environmentally preferred equipment Finance, Information Procurement 1.4 to identify/assess challenges and opportunities with Technology, Office of 2021-23 sustainable purchasing that can be scaled to other operations Sustainability and equipment. Procurement 2.1 Develop and begin implementing Council -adopted Finance 2023-25 sustainability criteria for procurement contracts. Revisit janitorial contracts (amendment to request for proposal Procurement 3.1 template & purchasing policy) to promote consistency with Finance 2025-27 Council -adopted climate goals for janitorial products and services. Natural Solutions Prepare the City's first Urban Forest Master Plan, to be brought before City Council in 2022, including a Public Works and Office Natural Solutions 1.1 comprehensive update of tree inventory, assessment of tree of Sustainability, 2021-23 canopy coverage, and implementation of an ongoing tracking system. Partner with ECOSLO and others in the community to support Natural Solutions 1.2 the 10,000 Trees by 2035 goal through a tree planting and Office of Sustainability 2021-23 maintenance program. 41 Page 791 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE Action Description ' Responsible Planned Initiation -.. Convene an interdepartmental staff team to assess and Public Works and Office Natural Solutions 1.3 provide recommendations for the Urban Forest Program's of Sustainability 2021-23 future role in advancing sustainability goals and objectives. Identify a strategy for a prioritized replacement schedule for Public Works, Office of Natural Solutions 1.4 downtown Ficus trees and begin implementation to ensure the Sustainability 2021-23 long-term preservation of the Downtown street tree canopy. Develop a "Carbon Farm Plan" for the City's Johnson Ranch Natural Solutions 1.5 Open Space and Calle Joaquin Agricultural Reserve ("City Office of Sustainability 2021-23 Farm") in 2021 to strategically implement compost application. Begin pilot implementation of compost application and Natural Solutions 1.6 monitoring to implement the Carbon Farm Plans described in Office of Sustainability, 2021-23 1.5, above, beginning in 2022 to advance carbon Parks & Recreation sequestration efforts. Actively pursue opportunities to purchase open space lands Natural Solutions 1.7 and permanent land conservation agreements in furtherance Office of Sustainability 2021-23 of the City's Greenbelt Protection Program. Natural Solutions 1.8 Explore opportunities to utilize regional green waste digester Office of Sustainability, Public Works, Parks & 2021-23 compost for beneficial use across properties and operations. Recreation Natural Solutions 2.1 Begin long-term implementation of "Carbon Farming" practices Office of Sustainability 2023-25 to advance carbon sequestration efforts. Continue planting trees on an annual basis towards the Natural Solutions 2.2 objective of 10,000 new trees by 2035 pending direction in the Office of Sustainability 2023-25 Urban Forest Master Plan to advance carbon sequestration efforts. Page 792 of 847 CITY OF SAN LUIS OBISPO LEAD BY EXAMPLE ResponsibleAction Description -.. Launch pilot project to strategically phase -in regional green Office of Sustainability, Natural Solutions 2.3 waste digester compost for landscape management Public Works, Parks & 2023-25 operations to promote circularity and advance carbon Recreation sequestration efforts. Continue planting trees on an annual basis towards the Natural Solutions 3.1 objective of 10,000 new trees by 2035 pending direction in the Office of Sustainability 2027-29 Urban Forest Master Plan to advance carbon sequestration efforts. 43 Page 793 of 847 Page 794 of 847 Draft Lead by Example: A Plan for Carbon Neutral City Operations Appendix A — Municipal Greenhouse Gas Emissions Inventory and Forecast LEAD BY EXAMPLE A Plan for Carbon Neutral Municipal Operations 17:7_1 1 1 Appendix A: Greenhouse Gas Emissions Inventory and Forecast Page 795 of 847 Draft Lead by Example: A Plan for Carbon Neutral City Operations Appendix A — Municipal Greenhouse Gas Emissions Inventory and Forecast Page 796 of 847 Draft Lead by Example: A Plan for Carbon Neutral City Operations Appendix A - Municipal Greenhouse Gas Emissions Inventory and Forecast CONTENTS 1. Introduction............................................................................................................................ 1 1.1 Municipal GHG Inventory Overview.................................................................................. 1 1.2 2005 Municipal GHG Inventory ......................................................................................... 2 1.3 2019 Municipal GHG Inventory ......................................................................................... 2 2. Building & Facility energy....................................................................................................... 4 2.1 Municipal Energy Sector Overview................................................................................... 4 2.2 Inventory Data and Methods............................................................................................. 4 2.2.1 Electricity................................................................................................................... 4 2.2.2 Natural Gas - Direct Emissions.................................................................................67 2.2.3 Natural Gas - Fugitive Emissions.............................................................................. 8 2.3 Total Energy GHG Emissions........................................................................................... 8 3. Fleet..................................................................................................................................1044- 3.1 Fleet Sector Overview.................................................................................................1044 3.2 Inventory Data and Methods........................................................................................1044 3.2.1 Gasoline................................................................................................................1044 3.2.2 Renewable Diesel and Biodiesel...........................................................................1142 3.3 Total Fleet GHG Emissions.........................................................................................124-3 4. Employee Commute..........................................................................................................134-4 4.1 Employee Commute Sector Overview.........................................................................134-4 4.2 Inventory Data and Methods........................................................................................134-4 4.3 Total Employee Commute GHG Emissions.................................................................1647 5. Wastewater...........................................................................................................................18 5.1 Wastewater Sector Overview...........................................................................................18 5.2 Inventory Data and Methods............................................................................................18 5.2.1 Stationary CHa from Incomplete Combustion of Digester Gas...................................18 5.2.2 Process N20 Emissions from Wastewater Treatment with Nitrification/Denitrification19 5.2.3 Other Wastewater Treatment Emissions...............................................................204-9 5.2.43. Potable Water Emissions...................................................................................204-9 5.3 Total Wastewater GHG Emissions...................................................................................20 6. Solid waste...........................................................................................................................21 4.1 Solid Waste Sector Overview..........................................................................................21 4.2 Updated Inventory Data and Methods.............................................................................21 4.3 Total Solid Waste GHG Emissions..................................................................................22 7. Forecast................................................................................................................................24 8. Areas for improvement.......................................................................................................26 City of San Luis Obispo Page 797 of 847 Draft Lead by Example: A Plan for Carbon Neutral City Operations Appendix A — Municipal Greenhouse Gas Emissions Inventory and Forecast Listof Abbreviations..............................................................................................................27 City of San Luis Obispo Page 798 of 847 Draft Lead by Example: A Plan for Carbon Neutral City Operations Appendix A — Municipal Greenhouse Gas Emissions Inventory and Forecast LIST OF TABLES Table 1.1. San Luis Obispo municipal GHG emissions(2005)................................................... 2 Table 1.2. San Luis Obispo municipal GHG emissions(2019)................................................... 3 Table 2.1. Municipal electricity activity data, 2005-2019 (kWh) .................................................. 5 Table 2.3. Community natural gas activity data, 2005-2019 (Therms) ........................................ 7 Table 2.4. Local Government Operations Protocol (LGOP) natural gas carbon dioxide equivalent. .................................................................................................................................................. 7 Table 2.5. Municipal Natural Gas GHG estimates, 2005-2019(MTCO2e)................................. 87- Table 2.6. Energy GHG emissions, 2005-2019(MTCO2e)........................................................98 Table 3.1. 2005 and 2019 gasoline use (gallons)......................................................................10 Table 3.2. Gasoline emissions factor (MTCO2e/gallon).............................................................10 Table 3.3. 2005 and 2019 GHG emissions for gasoline use(MTCO2e).................................1140 Table 3.4. 2005 and 2019 diesel use (gallons)..........................................................................11 Table 3.5. Diesel emissions factors (MTCO2e/gallon)................................................................11 Table 3.6. 2005 and 2019 GHG emissions for diesel use(MTCO2e).........................................12 Table 3.7. Total fleet GHG emissions(MTCO2e).......................................................................12 Table 4.1 2005 and 2019 total VMT per vehicle classification for combined single -occupancy and carpoolmodes..........................................................................................................................14 Table 4.2 2005 and 2019 total VMT for vanpool........................................................................14 Table 4.4 2005 and 2019 total VMT for single -occupancy, carpool, and vanpool modes ........... 14 Table 4.4 2005 and 2019 emissions factors by vehicle classification for single -occupancy and carpooltrips..............................................................................................................................15 Table 4.5 2005 and 2019 emissions factors for vanpool............................................................15 Table 4.6 2005 and 2019 GHG emissions per vehicle classification for single -occupancy and carpool(MTCO2e)....................................................................................................................16 Table 4.7 2005 and 2019 GHG emissions for vanpool..............................................................16 Table 4.8 Total employee commute GHG emissions(MTCO2e)...............................................17 Table 5.1 Stationary CH4 from Incomplete Combustion of Digester Gas equation....................19 Table 5.2 2019 total GHG emissions from wastewater treatment processes .............................20 Table 4.1. City solid waste activity data, 2008-2019 (Disposal Ton)..........................................21 Table 4.2. Full-time employee (FTE) factor used to calculate 2019 annual solid waste disposal tonnage.....................................................................................................................................22 City of San Luis Obispo Page 799 of 847 Draft Lead by Example: A Plan for Carbon Neutral City Operations Appendix A — Municipal Greenhouse Gas Emissions Inventory and Forecast Table 4.7. Total solid waste disposed emissions(MTCO2e)......................................................23 Table 7.1. BAU forecasted GHG emissions, 2005-2030(MTCO2e)...........................................24 City of San Luis Obispo Page 800 of 847 Public Review Draft Climate Action Plan Community Greenhouse Gas Emissions Inventory and Forecast LIST OF FIGURES Figure 2.2. Total municipal electricity activity data and GHG estimates, 2006-2019................... 6 Figure 2.3. Energy GHG emissions, 2005-2016(MTCOze)........................................................ 9 Figure 4.1. Total City solid waste (Disposal Ton)..................................................................2220 City of San Luis Obispo Page 801 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 1. INTRODUCTION 1.1 Municipal GHG Inventory Overview In 2020, the City of San Luis Obispo (City) adopted the City of San Luis Obispo Climate Action Plan for Community Recovery (CAP). The CAP provides a pathway to achieve community carbon neutrality by 2035 while also advancing equity initiatives and accelerating the transition to a green local economy as the community recovers from the COVID-19 crisis. The CAP consists of six greenhouse gas (GHG) sector related pillars including Clean Energy, Green Buildings, Connected Community, Circular Economy, Natural Solutions, and Lead by Example. The Lead by Example pillar's goals included achieving carbon neutral government operations by 2030 and adopting a carbon neutral municipal operations plan (now titled Lead by Example: A Plan for Carbon Neutral Municipal Operations) by July 2021. Although the City's operational emissions are only approximately 1.5% of community emissions, the Lead by Example pillar is important because it allows the City to illustrate the feasibility, challenges, and benefits of pursuing and achieving carbon neutral operations. A GHG inventory and forecast is the technical foundation of any GHG emissions reduction plan. The City prepared an updated 2005 baseline municipal GHG emissions inventory and a 2019 "check -in" emissions inventory update compliant with relevant protocols and guidance documents including the Local Government Operations Protocol. The Local Government Operations Protocol is the national standard for identifying sectors, quantifying, and reporting emissions from operational activities and assets. Consistent with the Local Government Operations Protocol's Scope 1 and Scope 2' emissions sectors, this inventory includes emissions from the use of electricity, onsite fuel combustion (i.e., natural gas), energy used for water and wastewater conveyance and treatment, on -road vehicles, and generation of solid-waste.2 This report presents a summary of the updated 2005 GHG emissions, details the 2019 municipal operations GHG inventory completed in 2021, and provides emissions forecasts for 2025 and 2030.3 Greenhouse gas emissions are not measured directly. They are modeled and estimated by multiplying data about some activity (e.g., the amount of electricity consumed, the number of miles travelled in fossil fuel powered vehicles, the tons of solid waste sent to the landfill, etc.) by the greenhouse gas emission content of a typical unit of that activity (e.g., the average greenhouse gas emissions content per therm of combusted natural gas). This inventory accounts for three common greenhouse gasses: carbon dioxide (CO2), methane (CH4), and nitrous oxide (N20). Since methane and nitrous oxide are substantially more potent greenhouse gases than carbon Scope 1 covers all direct emissions from City -owned property and assets, with the exception of direct CO2 from biogenic sources. Scope 2 covers indirect emissions associated with the consumption of purchased or acquired electricity, steam, heating, or cooling. More information can be found at https://ww3.arb.ca.gov/cc/protocols/localgov/pubs/Igo protocol v1 1 2010-05-03.pdf. 2 The electricity and natural gas sectors of the City's GHG inventory include energy used to convey and treat water. 3 Due to lagging data availability, 2019 is the most recent year for complete GHG inventory data. Annual inventory updates will occur beginning in 2021. Where more current information is available by sector, it is provided in this report. City of San Luis Obispo Page A-1 Page 802 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast dioxide (86 and 265 times more potent, respectively), the emissions modeled from their release into the atmosphere are multiplied by their respective potential to warm the atmosphere relative to CO2. The common reporting unit for greenhouse gas emissions is "Metric Tons of Carbon Dioxide Equivalence", or MTCO2e. 1.2 2005 Municipal GHG Inventory In 2020-21, the City prepared a municipal operations inventory of GHG emissions for the 2005 calendar year. City municipal operations total 2005 baseline GHG emissions are estimated to be 6,730 metric tons of carbon dioxide equivalent (MTCO2e). The inventory includes Building and Facility Energy, Fleet, Employee Commute and Solid Waste sectors4. Of the four sectors, Building & Facility Energy contributes the largest amount of GHG emissions with estimated emissions of 3,550 MTCO2e or 53 percent of the total municipal emissions. The second largest sector is Fleet with estimated emissions of 2,250 MTCO2e or 33 percent of the total City emissions. The third largest sector is Employee Commute with estimated emissions of 810 MTCO2e or 12 percent. The Solid Waste sector makes up the remaining two percent of the total city operations emissions. Table 1.1 presents the updated estimated 2005 GHG emissions by sector and their percent of total emissions. Table 1.1. San Luis Obispo municipal GHG emissions (2005). Sector Subsector Subsector MTCO2e Sector MTCO2e Sector Percent of Total Energy Municipal electricity use 2,830 3,550 53% Municipal natural gas use 720 Fleet Fleet gasoline 730 2,250 33% Fleet diesel 1,520 Employee Commute 810 12% Solid Waste 120 2% Total 6,730 100% 1.3 2019 Municipal GHG Inventory Table 1.2 provides the 2019 GHG emissions inventory results. In 2019, total municipal GHG emissions are estimated to be 5,100 MTCO2e. As in 2005, Building and Facility Energy is the largest contributor, with an estimated 2,130 MTCO2e or 42 percent of the total operational emissions. Fleet is the second largest sector with 2,090 MTCO2e or 41 percent of the total operational emissions. The third largest sector is Employee Commute with estimated emissions of 730 MTCO2e or 14 percent. The Solid Waste sector makes up the remaining two percent of the total city operations emissions. 4 Staff also calculated direct process emissions from wastewater treatment, but they are not included in total estimated emissions for 2005 or 2019 due to indefensible methods. Estimated emissions for these processes are included in the Wastewater section as an informational item. City of San Luis Obispo Page A-2 Page 803 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 1.2. San Luis Obispo municipal GHG emissions (2019). Sector Subsector Subsector Sector Sector Percent MTCO2e MTCO2e of Total Municipal electricity use 1,310 Energy 2,130 0 42 /o Municipal natural gas use 820 Fleet gasoline 660 Fleet 2,090 41 % Fleet diesel 1,430 Employee -- 730 14% Commute Solid Waste -- 120 3% Total 5,070 100% 1.3 GHG Inventory Comparison Between baseline year 2005 and inventory year 2019, municipal operations GHG emissions decreased by 1,660 MTCO2e, or approximately 25 percent. This reduction in annual emissions can be attributed to a variety of energy efficiency projects that were implemented by the City, and the gradual reduction in greenhouse gas intensity of the electricity grid. Figure 1.1 shows the total inventoried greenhouse gas emissions for calendar years 2005 and 2019. QUIR 2019 Figure 1.1 Total municipal GHG emissions, 2005 and 2019. 1,000 2,000 3,000 4,000 5,000 6,000 7,000 MTCO2e City of San Luis Obispo Page A-3 Page 804 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 2. BUILDING & FACILITY ENERGY 2.1 Municipal Energy Sector Overview This section presents the 2005 and 2019 GHG emissions for the Building & Facility Energy sector, which includes emissions generated from electricity and natural gas use that has occurred as a result of municipal operations. 2.2 Inventory Data and Methods This section provides municipal electricity and natural gas activity data and emissions estimates for the baseline years of 2005 and 2019. Emissions estimates are calculated by multiplying the activity data (kWh for electricity and therms for natural gas) by an emissions coefficient provided by the utility or from the Local Government Operations Protocol. 2.2.1 Electricity Pacific Gas & Electric (PG&E) Company provides municipal operations electricity data upon request from City staff. Between 2005 and 2019, annual electricity activity decreased by 2,839,970 kWh, or 23 percent. Between 2013 and 2019, the City implemented a number of energy efficiency projects across municipal buildings and facilities, including key street lighting retrofits, which is reflected in decreases in activity data. Activity data for calendar year 2017 was not provided in its entirety by PG&E and is not included in this data set. To calculate GHG emissions, an emissions factor is applied to the activity data. PG&E staff provided CO2 emissions factors via a City staff request. Due to changes in PG&E's energy portfolio (and particularly an increase in renewable energy supplies), the 2019 emissions factor is approximately 40 percent lower than the 2005 factor. Table 2.1 provides the activity data, emissions factor, and GHG emissions from municipal electricity use from 2005 to 2019. During this time, electricity related GHG emissions decreased by 1,520 MTCO2e, or approximately 54 percent. Staff attribute this decrease in energy use activity data and GHG emissions to widespread facility efficiency projects beginning in 2013, including streetlight LED retrofits and the integration of an onsite co -generation system at the Water Resource Recovery Facility (WRRF). Coupled with the observed decrease in electricity activity data as explained above, decreasing emissions intensity for electricity (activity data for calendar year 2017 was not provided in its entirety by PG&E, so annual MTCO2e was not calculated for that year). City of San Luis Obispo Page A-4 Page 805 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 2.1. Municipal electricity activity data, 2005-2019 (kWh). Year Annual Activity Data (kWh2005 MTCOze/kWh Total (MTCOze) 12,615,160 0.000224 2,830 2006 13,235,010 0.000208 2,770 2007 13,547,430 0.000290 3,940 2008 13,524,290 0.000292 3,960 2009 13,821,810 0.000262 3,630 2010 13,157,170 0.000203 2,680 2011 11,219,720 0.000179 2,020 2012 11,877,650 0.000203 2,420 2013 13,924,720 0.000195 2,720 2014 12,766,050 0.000198 2,540 2015 12,098,390 0.000185 2,240 2016 10,888,880 0.000135 1,470 2017 -- -- -- 2018 10,341,149 0.000134 1,390 2019 9,775,190 0.000134 1,310 Figure 2.1 illustrates GHG and kWh activity data between 2005 and 2019. It is important to note that while overall electricity use has been steadily decreasing, GHG emissions have been more variable due to changes in PG&E's power portfolio and the related carbon intensity of the electricity it supplies. City of San Luis Obispo Page A-5 Page 806 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Figure 2.1. Total municipal electricity activity data and GHG estimates, 2006-2019. 16,000,000 4,500 14,000,000 4,000 12,000,000 3,500 10,000,000 3,000 2,500 8,000,000 2,000 6,000,000 1,500 4,000,000 1,000 2,000,000 500 0 0 2005 2010 2015 2020 tkWh MTCO2e 2.2.2 Utilities Electricity The above total electricity data for the City of San Luis Obispo is tied to two major funding sources: the General Fund and the Utilities Fund. The Utilities Fund includes electricity use for the conveyance and treatment of potable drinking water and wastewater. Based on research from staff, it is estimated that approximately 65 percent of total City electricity use can be attributed to critical services related to water and wastewater within the Utilities Fund. In future Lead by Example updates, staff commit to working with the Utilities Department to utilize the in - development Utilities energy management dashboard to gain a deeper understanding of electricity use associated with these critical services and more clearly communicate how energy is used across City operations. To source potable drinking water, the City actively manages a portfolio of reservoirs that are either owned by the City or partner agencies and jurisdictions. The amount of water conveyed from a given source at any time depends on a variety of factors that are overseen by the Utilities Department. While electricity use associated with pumping at the City -owned Whale Rock reservoir is included in this inventory, pumping at the Nacimiento and Salinas reservoirs are considered out of scope as they are not owned by the City and are simultaneously utilized by other jurisdictions. As new operational emissions reporting protocols emerge, staff will consider including electricity use from these secondary reservoirs in future inventory updates. 2.2.3 Natural Gas — Direct Emissions Natural gas is primarily composed of methane and includes very small amounts of ethane, propane, butane, pentane, nitrogen, and carbon dioxide. When natural gas is combusted, most of the methane becomes carbon dioxide and water. Traditionally, greenhouse gas emissions inventories account for the emissions that occur as the result of the onsite combustion of natural gas. However, some of the un-combusted gas escapes as fugitive methane. Southern California Gas Company (SoCalGas) provides natural gas utility services to the City. Table 2.3 provides the City of San Luis Obispo Page A-6 Page 807 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast natural gas activity data in therms from 2005-2019. Activity data for calendar years 2008 through 2013 was not provided by SoCal Gas and is not included in this data set. Table 2.3. Community natural gas activity data, 2005-2019 (Therms). Year Total 2005 133,607 2006 193,517 2007 160,264 2008-2013 Data Not Available 2014 182,045 2015 130,865 2016 149,676 2017 154,877 2018 145,790 2019 154,125 Just as with electricity, GHG emissions are estimated from activity data by applying an emission coefficient to the activity data. Table 2.4 shows the emission coefficient for converting therms of natural gas combusted on -site to MTCO2e. Unlike electricity, the inventory assumes no changes in the carbon intensity of combusting natural gas in any given year, as the chemical composition of combusted natural gas does not substantially vary from year to year. Table 2.4. Local Government Operations Protocol (LGOP) natural gas carbon dioxide equivalent. Greenhouse Gas MTCO2e/Therm CO2 0.005310 CHa 0.000043 N2O 0.000003 CO2e 0.005320 Table 2.5 provides GHG emissions estimates in MTCO2e for natural gas consumption in the agency from 2005-2019. As noted in the natural gas activity data, there was a total increase in natural gas -related emissions of approximately 13 percent. Activity data for calendar years 2008 through 2013 was not provided by SoCal Gas annual MTCO2e was not calculated for those years. City of San Luis Obispo Page A-7 Page 808 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 2.5. Municipal Natural Gas GHG estimates, 2005-2019 (MTCOze). Year Total (MTCO2e) 2005 720 2006 1,040 2007 860 2008-2013 Data Not Available 2014 970 2015 700 2016 800 2017 830 2018 780 2019 820 2.2.3 Natural Gas — Fugitive Emissions Methane is a powerful greenhouse gas and 86 times stronger than carbon dioxide over a 20-year time period in the atmosphere. As more is learned about the total natural gas system leakage rate from well head, through the transmission system, to the distributions system, and at the end use, it is becoming clear that fugitive methane emissions from the usage of natural gas is a critical component of the climate crisis. Staff is currently working with technical experts to identify a defensible method for estimating these emissions. Although not included in this report, they will likely be included in future reports and are expected to substantially increase the emissions profile of natural gas consumption. 2.3 Total Energy GHG Emissions Table 2.6 and Figure 2.2 show the total energy related GHG emissions from electricity and natural gas. Between 2005 and 2019, total energy related GHG emissions decreased by approximately 39 percent. Note that Figure 2.2 provides total energy sector emissions with a dark line; the dashed line indicates a total emissions estimate necessitated by missing data. As described in the above sub -sections, the net decrease in energy related GHG emissions between 2005 and 2019 can be attributed to a decrease in electricity consumption because of wide-ranging energy efficiency projects. The electricity emissions factor for PG&E also decreased by nearly half between 2005 and 2019 due to a reduced carbon intensity of grid -sourced electricity. Natural gas use showed a slight total increase between 2005 and 2019 but remained relatively stable, and the natural gas emissions factor stayed consistent. These combined factors resulted in a significant decrease in energy GHG emissions in 2019 compared to the baseline year of 2005. City of San Luis Obispo Page A-8 Page 809 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 2.6. Energy GHG emissions, 2005-2019 (MTCO2e). Year Electricity Natural Gas Total 2005 2,830 720 3,550 2006 2,770 1,040 3,810 2007 3,940 860 4,800 2008 3,960 -- -- 2009 3,630 -- -- 2010 2,680 -- -- 2011 2,020 -- -- 2012 2,420 -- -- 2013 2,720 -- -- 2014 2,540 970 3,510 2015 2,240 700 2,940 2016 1,470 800 2,270 2017 -- 830 -- 2018 1,390 780 2,170 2019 1,310 820 2,130 Figure 2.2. Energy GHG emissions, 2005-2016 (MTCO2e). 6,OOC 5,000 4,000 a� N 3,000 2,000 1,000 0 2004 2006 2008 2010 2012 Year 2014 2016 2018 2020 City of San Luis Obispo Page A-9 Page 810 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 3. FLEET 3.1 Fleet Sector Overview This section presents 2005 and 2019 GHG emissions for the Fleet sector and includes emissions from all on -road trips (including cars, trucks, buses, etc.) and the use of maintenance equipment that have occurred as a result of City operations. 3.2 Inventory Data and Methods This section provides updated activity data and an emissions estimate for baseline year 2005 and activity data and an emissions estimate for 2019. The inventory utilizes gasoline and diesel fuel usage data sourced from the Public Works Department's third -party fleet management system, AssetWorks, as activity data for each year. Data for transit and fire vehicles were transmitted via email from department staff. 3.2.1 Gasoline Staff from the Public Works department provided activity data for the total gallons of gasoline used in calendar year 2005 and 2019. Table 3.1 shows the activity data for gasoline used in 2005 and 2019 (gallons). Table 3.1. 2005 and 2019 gasoline use (gallons). Year Gasoline (gallons) 2005 83,440 2019 75,570 To calculate total GHG emissions, an emissions factor is applied to activity data. Table 3.2 shows the gasoline emissions factor CO2e. The emissions factor was provided by The Climate Registry's 2019 Default Emission Factor Report. Emissions factors for fuels have been relatively static over time, so a single emissions factor is used for both 2005 and 2019 activity data. Table 3.2. Gasoline emissions factor (MTCO2e/gallon). Fuel Type MTCO2e/gallon Gasoline 0.00878 The emissions factor was applied to gasoline activity data to calculate the GHG emissions for gasoline in 2005 and 2019, as shown in table 3.3. City of San Luis Obispo Page A-10 Page 811 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 3.3. 2005 and 2019 GHG emissions for gasoline use (MTCO2e). Year MTCO2e 2005 730 2019 660 3.2.2 Renewable Diesel and Biodiesel The City's Public Works Department uses a diesel blend of 90 percent renewable diesel and 10 percent biodiesel. The Public Works department began using this renewable and biodiesel blend in 2017. Both renewable and biodiesel are petroleum -free alternatives to conventional diesel sourced from renewable feedstocks such as fats and oils5. The production processes for renewable diesel results in a fuel composition that mimics that of conventional diesel. This makes the fuel ideal as a drop -in replacement for conventional diesel uses like heavy-duty fleet vehicles. While biodiesel produces less tailpipe GHG emissions and renewable diesel produces less Scope 36 GHG emissions compared to conventional diesel, they are associated with other environmental concerns related to the impacts of feedstock sourcing and production. Because the current blend of renewable and bio-diesel does not have significant impacts on tailpipe emissions per gallon of fuel used (Table 3.5), the City will continue to explore and pursue, when feasible, the transition to zero -emission fuels and vehicles in order to achieve a truly carbon -neutral fleet. Table 3.3 shows the activity data for diesel used in 2005 and 2019 (gallons). Table 3.4. 2005 and 2019 diesel use (gallons). Year Diesel (gallons) 2005 149,040 2019 141,590 Given that the diesel used by the City is a blend of renewable and biodiesel, staff applied two emissions coefficients to diesel activity data to calculate total GHG emissions. The emissions factor was provided by The Climate Registry's 2019 Default Emission Factor Report. Table 3.4 shows the emissions coefficients for renewable diesel and biodiesel, respectively. Table 3.5. Diesel emissions factors (MTCO2e/gallon). Year Fuel Type MTCO2e/gallon 2005 Diesel 0.01021 2019 Renewable Diesel 0.01021 Biodiesel 0.00945 To calculate GHG emissions for the diesel blend, emissions coefficients were weighted based on the composition of each respective fuel type and applied to activity data. Therefore, the renewable 5 https://www.sciencedirect.com/topics/engineering/renewable-diesel 6 Scope 3 emissions include all other indirect emissions not covered in Scope 1 and 2, such as the emissions resulting from the extraction and production of purchased materials and fuels. More information can be found at: https://ww3.arb.ca.gov/cc/protocols/localgov/pubs/Igo protocol v1 1 2010-05-03.pdf. City of San Luis Obispo Page A-11 Page 812 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast diesel coefficient was applied to 90 percent of the diesel activity data and the biodiesel coefficient was applied to 10 percent of the activity data. The sum of those two outputs was equal to the total GHG emissions for diesel use. Table 3.5 shows the total GHG emissions for diesel use (MTCO2e). Table 3.6. 2005 and 2019 GHG emissions for diesel use (MTCO2e). Year MTCO2e 2005 1,520 2019 1,430 3.3 Total Fleet GHG Emissions Table 3.7 shows the total fuel related GHG emissions from gasoline and diesel combined. Between 2005 and 2019, total fuel related GHG emissions decreased by 150 MTCO2e, or approximately seven percent. Table 3.7. Total fleet GHG emissions (MTCO2e). Year Total (MTCO2e) 2005 2,250 2019 2,090 City of San Luis Obispo Page A-12 Page 813 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 4. EMPLOYEE COMMUTE 4.1 Employee Commute Sector Overview This section presents the 2005 and 2019 GHG emissions for the Employee Commute sector and includes emissions from all passenger vehicle trips taken by City employees traveling to and from work. 4.2 Inventory Data and Methods This section provides VMT activity data and emissions estimates for the baseline year of 2005 and inventory year 2019. Active Transportation staff collects biennial commute data that Office of Sustainability staff used for the purposes of the inventory. Employee commute data was collected by staff and then anonymized for analysis. VMT attributed to trips where employees walked, rode a bicycle, took a bus, or drove an electric vehicle were removed from the data set. For all active transportation modes, no direct GHG emissions are produced as a result of activity. Direct emissions related to electric vehicles was not included in this analysis. For those that utilized transit, those emissions are accounted for in the Fleet sector of the inventory. For single -occupancy and carpool trips, staff calculated the sum of VMT per vehicle type. Vehicle types were classified according to the California Air Resources Board (CARB) Emissions Factor (EMFAC) Model. Table 4.1 shows annual VMT per vehicle classification and percentage of total VMT. City of San Luis Obispo Page A-13 Page 814 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 4.1 2005 and 2019 total VMT per vehicle classification for combined single - occupancy and carpool modes. Year Vehicle Classification Total VMT % EMFAC VMT Passenger Cars 870,460 46% Light -Duty Trucks (0-3,750 lbs.) 81,590 4% Light -Duty Trucks (3,750-5,750 lbs.) 386,610 20% Light -Heavy -Duty Trucks (8,501-10,000 lbs.) 117,460 6% 2005 Light -Heavy -Duty Trucks (10,001-14,000 lbs.) 18,160 2% Motorcycles 39,882 2% Medium -Duty Trucks (5,751-8,500 lbs.) 306,120 16% Other 70,768 4% Total 1,902,716 100% Passenger Cars 819,610 43% Light -Duty Trucks (0-3,750 lbs.) 263,240 14% Light -Duty Trucks (3,750-5,750 lbs.) 225,680 12% 2019 Light -Heavy -Duty Trucks (8,501-10,000 lbs.) 368,290 19% Motorcycles 112,920 6% Medium -Duty Trucks (5751-8500 lbs.) 113,930 6% Total 1,903,670 100% Table 4.2 shows 2005 and 2019 total VMT for the vanpool. Between 2005 and 2019, annual VMT activity data for single -occupancy and carpool increased by 111,600 VMT, or approximately six percent. In the same time period, annual VMT for vanpool increased by 23,820 VMT, or approximately 130 percent. Table 4.3 shows total VMT for single occupancy, carpool, and vanpool modes. Overall, annual VMT increased by 26,560 VMT between 2005 and 2019, or approximately one percent. Table 4.2 2005 and 2019 total VMT for vanpool. Year Annual VMT 2005 17,900 2019 43,520 Table 4.4 2005 and 2019 total VMT for single -occupancy, carpool, and vanpool modes. Year Annual VMT 2005 1,920,620 2019 1,947,180 City of San Luis Obispo Page A-14 Page 815 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Similar to the Fleet and Building & Facility Energy sectors, emissions factors are applied to activity data to calculate GHG emissions. Emissions factors were provided by the 2005 and 2019 EMFAC Model, respectively, with an individual emissions factor provided for each vehicle classification based on the fuel used and the weight of the vehicle. Table 4.4 shows the emissions factors for single -occupancy and carpool trips by vehicle classification. Table 4.4 2005 and 2019 emissions factors by vehicle classification for single -occupancy and carpool trips. Year Vehicle Classification MTCO2e/VMT Passenger Cars 0.000339 Light -Duty Trucks (0-3,750 lbs.) 0.000396 Light -Duty Trucks (3,750-5,750 lbs.) 0.000470 2005 Light -Heavy -Duty Trucks (8,501-10,000 lbs.) 0.000765 Motorcycles 0.000154 Medium -Duty Trucks (5,751-8,500 lbs.) 0.000583 Total 0.000250 Passenger Cars 0.000296 Light -Duty Trucks (0-3,750 lbs.) 0.000333 2019 Light -Duty Trucks (3,750-5,750 lbs.) 0.000703 Light -Heavy -Duty Trucks (8,501-10,000 lbs.) 0.000192 Motorcycles 0.000401 Table 4.5 shows the emissions factors for vanpool trips for 2005 and 2019. The emissions factor used for vanpool trips was the emissions factor for the LHD1 vehicle class, or light -heavy-duty trucks (8,501 to 10,000 lbs.). This vehicle classification was chosen based on the type of vehicle typically used for vanpools. Table 4.5 2005 and 2019 emissions factors for vanpool. Year MTCO2e/VMT 2005 0.000764904 2019 0.000702558 Emissions factors were then applied to activity data to calculate the annual GHG emissions of each vehicle classification. Table 4.6 shows the annual GHG emissions for single -occupancy and carpool trips by vehicle classification. Table 4.7 shows the annual GHG emissions for vanpool trips. City of San Luis Obispo Page A-15 Page 816 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 4.6 2005 and 2019 GHG emissions per vehicle classification for single -occupancy and carpool (MTCO2e). Year Vehicle Classification MTCO2e Passenger Cars 300 Light -Duty Trucks (0-3,750 lbs.) 30 Light -Duty Trucks (3,750-5,750 lbs.) 180 2005 Light -Heavy -Duty Trucks (8,501-10,000 lbs.) 90 Motorcycles 0 Medium -Duty Trucks (5,751-8,500 lbs.) 180 Passenger Cars 210 Light -Duty Trucks (0-3,750 lbs.) 80 Light -Duty Trucks (3,750-5,750 lbs.) 80 2019 Light -Heavy -Duty Trucks (8,501-10,000 lbs.) 260 Motorcycles 20 Medium -Duty Trucks (5751-8500 lbs.) 50 Table 4.7 2005 and 2019 GHG emissions for vanpool. Year MTCO2e 2005 10 2019 30 4.3 Total Employee Commute GHG Emissions Table 4.8 shows the total GHG emissions from employee commute. Between 2005 and 2019, total GHG emissions decreased by 80 MTCO2e, or approximately ten percent. While annual VMT increased between 2005 and 2019 (Table 4.3) and employee commute data showed a decrease in light -duty vehicle use proportional to other medium and heavier -duty vehicles (Table 4.1), annual emissions showed a net decrease between 2005 and 2019. This could be attributed to a number of factors. First, the survey that is used to collect employee commute data is optional and not representatively reflective of the entire employment of the City. This can yield inconsistent and incomplete data. Additionally, as seen in Table 4.4 and Table 4.5, there is an observed overall decrease in the GHG emissions intensity of passenger vehicles between 2005 and 2019 as a result of federal emissions standards. City of San Luis Obispo Page A-16 Page 817 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 4.8 Total employee commute GHG emissions (MTCO2e). Year Total GHG Emissions (MTCO2e) 2005 810 2019 730 City of San Luis Obispo Page A-17 Page 818 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 5. WASTEWATER 5.1 Wastewater Sector Overview The treatment of wastewater produces direct and indirect GHG emissions. Indirect emissions related to energy use are included in Chapter 2 Building and Facility Energy Use. Direct emissions reported in this document are limited to methane produced by biogas generation. Due to data and method limitations, this information is provided for reference but is not included in the municipal operations inventories. 5.2 Inventory Data and Methods The Wastewater Resource Recovery Facility (WRRF) is responsible for treating wastewater within the City and has contractual agreements to treat the wastewater from Cal Poly and the San Luis Obispo County airport. The facility is rated for 5.1 million gallons of wastewater and operates 24 hours a day, 365 days a year. The WRRF provides wastewater treatment starting with preliminary treatment and ending with disinfection. The system processes included screening and grit removal, clarification, biological nutrient removal, mono -media filtration, and disinfection. The treated wastewater is discharged to San Luis Obispo Creek at the southern end of the property. Solids removed by the treatment processes are either dewatered (grit and screenings) or thickened, stabilized in anaerobic digesters, and dewatered (biological sludge). Biosolids are trucked and disposed of off -site. 5.2.1 Stationary CH4 from Incomplete Combustion of Digester Gas Anaerobic digesters are used to treat the solids stream in the wastewater process. These digesters produce biogas as a part of the anaerobic process and conversion into biosolids. Staff from Utilities provided process data for the measured standard cubic feet of digester gas produced per day (ft3/day) and the fraction of CH4 present in biogas. Using that information, GHG emissions from the incomplete combustion of digester gas were calculated. Staff utilized an equation from the Local Government Operations Protocol where activity data was inputted, and other constants and factors were provided. Table 5.1 shows the full LGOP equation, including provided constants and factors and inputted activity data. City of San Luis Obispo Page A-18 Page 819 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 5.1 Stationary CH4 from Incomplete Combustion of Digester Gas equation. CH4 emissions (MTCO2e) = Year (Digester Gas x F CH4 x p(CH4) x (1-DE) x 0.0283 x 365.25 x 10 - Value 6) x GWP 2013 2019 = Digester gas CH4 emissions methane generation Computed 210 320 potential =Measured standard Activity Data (Digester cubic feet of digester User Input 64,094 95,650 Gas) gas produced per day [ft3/day] F CH4 = CH4 fraction in User Input 0.56516 0.56516 biogas p CHa = Methane density 662 662 662 DE = CH4 destruction 0.99 0.99 0.99 efficiency 0.0283 = Cubic feet to cubic 0.0283 0.0283 0.0283 meters 365.25 = Days per year 365.25 365.25 365.25 0.000001 = Grams to metric 0.000001 0.000001 0.000001 tons GWP AR5 = GWP of methane 86 86 86 The data management system used by the Utilities Department that sourced digester gas activity data was installed in 2012. Therefore, 2013 is the earliest available year with complete and accessible activity data. Staff were not able to calculate a 2005 baseline inventory for this emissions source. It is important to note that between 2013 and 2019, the WRRF employed a co -generation system to convert digester gas to electricity that is used at the facility. In 2018, the Utilities Department deployed a pilot program to increase biogas production by supplementing the digesters with a mix of microorganisms and enzymes. These supplements effectively increased biogas production for on -site energy production via the co -generation system. This resulted in a net increase in measured standard cubic feet of digester gas produced per day (Table 5.1), and subsequently, an assumed decrease in flared biogas (not integrated into the quantification for stationary CH4). 5.2.2 Process N20 Emissions from Wastewater Treatment with Nitrification/Den itrification According to the Local Government Operations Protocol for quantifying GHG emissions for wastewater treatment, process nitrous oxide (N20) emissions from wastewater treatment with nitrification and denitrification should be calculated. However, the WRRF process only completes the nitrification process and there are no guidance documents associated with quantifying the emissions associated only with this process. Given the likely minimal nature of these emissions as shown in the above calculations, the City omitted process N20 emissions quantification from the total 2005 and 2019 GHG emissions for the Wastewater sector. City of San Luis Obispo Page A-19 Page 820 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 5.2.3 Other Wastewater Treatment Emissions Electricity is used power the processes to treat wastewater at the WRRF. Emissions associated with energy use at the WRRF are included in Chapter 2 Building and Facility Energy. 5.2.43. Potable Water Emissions The Wastewater section does not include GHG emissions quantifications for the treatment or conveyance of potable water. Emissions from the City's Water Treatment Plant included in this inventory are directly related to energy use, which is represented in Chapter 2 Building and Facility Energy, above. 5.3 Total Wastewater GHG Emissions Table 5.2 shows the total GHG emissions of stationary CHa from incomplete combustion of digester gas. In 2019, total GHG emissions for stationary CHa from incomplete combustion of digester gas was 320 MTCO2e. Staff ultimately determined the method for estimating emissions for this activity is not justifiable and does not accurately represent emissions associated with the wastewater treatment process, so the below values are only included as an informational item and are not included in the 2019 Municipal GHG Inventory. Table 5.2 2019 total GHG emissions from wastewater treatment processes. Year Total GHG Emissions (MTCO2e) 2013 210 2019 320 City of San Luis Obispo Page A-20 Page 821 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 6. SOLID WASTE 4.1 Solid Waste Sector Overview This section presents the GHG emissions for the solid waste sector, specifically emissions generated from the disposal of waste that has occurred as a result of City operations. This section presents the updated 2005 GHG emissions along with modeled emissions for 2019. 4.2 Updated Inventory Data and Methods This section provides updated solid waste activity data for the baseline year of 2005, as well as activity emissions estimates for years 2005 through 2019 to estimate the City's total greenhouse gas emissions. The City of San Luis Obispo deposits all trash (not including recycling or organic waste) generated as a result of municipal operations into the Cold Canyon Landfill. The Cold Canyon Landfill provided solid waste disposal data that was used in this analysis. Table 4.1 and Figure 4.1 provide annual municipal operation solid waste disposal tonnage for 2005 to 2019. There is no available solid waste disposal data for calendar year 2019 as was calculated for previous years. Staff use a per full-time employee (FTE) metric to project waste for 2019 based on recorded waste generation from previous years. Table 4.2 shows the FTE factor used to calculate 2019 annual solid waste disposal tonnage, which estimates that approximately 1.004 tons of solid waste are disposed per employee. Although this method is consistent with Local Government Operations Protocol methods, staff will seek to update the inventory with empirical data in Fiscal Year 2021-22. Table 4.1. City solid waste activity data, 2008-2019 (Disposal Ton). Year Total Waste (Tons) 2005 276 2006 276 2007 276 2008 277 2009 262 2010 261 2011 253 2012 254 2013 255 2014 255 2015 269 2016 269 2017 -- 2018 -- 2019 270 City of San Luis Obispo Page A-21 Page 822 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 4.2. Full-time employee (FTE) factor used to calculate 2019 annual solid waste disposal tonnage. 300 290 280 270 rn 260 co c 250 0 240 230 220 210 200 2004 Solid Waste Coefficient (tons per FTE) 1.003636 Figure 4.1. Total City solid waste (Disposal Ton). 2006 2008 2010 2012 2014 2016 2018 202 tTotal Waste (Tons) 4.3 Total Solid Waste GHG Emissions To estimate the solid waste GHG emissions, the carbon dioxide equivalency emissions factor was multiplied by the disposal ton activity data. Once these were applied, the annual solid waste disposal ton emissions were calculated. As shown in Table 4.7, from 2005 to 2019, the solid waste sector remained relatively consistent in terms of total emissions. City of San Luis Obispo Page A-22 Page 823 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Table 4.17. Total solid waste disposed emissions (MTCOze). Year Total Waste (Disposal Ton) Solid Waste Total Emissions MTCO2e 2005 276 120 2006 276 120 2007 276 120 2008 277 120 2009 262 110 2010 261 110 2011 253 110 2012 254 110 2013 255 110 2014 255 110 2015 269 120 2016 269 120 2017 -- -- 2018 -- -- 2019 270 120 City of San Luis Obispo Page A-23 Page 824 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 7. FORECAST The adjusted business as usual (ABAU)' GHG emissions forecast estimates how municipal emissions would change over time if no action were taken to reduce emissions. The forecast is based on changes to the number of Full Time Employees (FTE), building and facility square footage, and wastewater treatment service population. Given projected changes to the three demographics mentioned above, total municipal emissions are expected to increase slightly relative to 2019 (and remain decreased relative to 2005). As shown in Table 7.1, emissions in 2025 are projected to be 5,070 MTCO2e (approximately 25 percent below 2005 levels), and in 2030 are expected to be at 5,150 MTCO2e (approximately 23 percent below 2005 levels). Table 7.1. BAU forecasted GHG emissions, 2005-2030 (MTCO2e). Sector 2005 2019 2025 2030 % change from baseline in 2030 Building & Facility Energy 3,550 2,130 2,110 2,290 -35.5% Fleet 2,250 2,090 2,130 2,130 -5.3% Employee Commute 810 730 710 610 -24.7% Solid Waste 120 120 120 120 0.0% TOTAL 6,730 5,070 5,070 5,150 -23.5% Change from 2005 -- -1,660 -1,660 -1,580 The results of the municipal operations GHG emissions inventory and forecast show total emissions remaining steady in 2025 relative to baseline years 2005 and 2019 followed by a steady increase in total emissions between 2025 and 2030. As described in previous sections, the overall decrease in GHG emissions between 2005 and 2019 can be attributed largely to decreases in facility and fleet energy use and corresponding decreases in emissions factors for respective fuel sources. The anticipated increase in emissions between 2019 and 2025 and again between 2025 and 2030 can be closely tied with forecasted increases in demographic data used to project emissions. For example, when conducting this forecast, staff worked closely with other departments to reasonably and justifiably forecast the expected number of City employees, building and facility square footage as new and replacement development projects are implemented, and service population. These growth factors directly contribute to the forecasted increase in total emissions between 2019 and 2030. For example, staff were able to confirm four planned development projects between 2019 and 2030, two of them large-scale facilities (new Police Department headquarters and the Palm- ' A business as usual emissions forecast projects greenhouse gas emissions based on expected changes in demographic data, such as new building square footage and growth in the number of total employees, while using the same emissions coefficients for the base inventory year (e.g. 2019). An adjusted business as usual emissions forecast utilizes those same metrics while also using projected emissions coefficients for each forecast year (e.g. expected fuel and electricity emissions coefficients). Staff decided to create an adjusted business as usual forecast in this analysis for accuracy and completeness. City of San Luis Obispo Page A-24 Page 825 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Nipomo parking garage). These new developments are expected to add a total of 265,094 additional indoor air-conditioned and outdoor non air-conditioned square feet to the City's portfolio by 2030, or an increase of approximately 51 percent. As shown in Table 7.1, this demographic information has a significant impact on forecasted building and facility energy emissions. City of San Luis Obispo Page A-25 Page 826 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast 8. AREAS FOR IMPROVEMENT A greenhouse gas emissions inventory is only a snapshot of the total emissions occurring in City operations. The report as presented includes emissions sectors and categories as required by accounting protocol and represent those sectors that have defensible and transparent methods and data. As the City continues its path of climate action toward municipal carbon neutrality, the following areas for improvement will be closely monitored: Wastewater - The Local Government Operations Protocol requires local governments to account for direct process emissions that occur from the treatment of wastewater. It is known that the treatment of wastewater can release Nitrous Oxide and Methane, both of which are powerful greenhouse gases. Although the GPC provides accounting methods for estimating the direct release of Methane emissions, an accounting protocol does not exist for estimating the direct release of Nitrous Oxide from the specific type of treatment that occurs at the San Luis Obispo Water Resource Recovery Facility (nitrification, but no denitrification). The City will continue to explore solutions to this accounting issue and intends to seek support from partners and academic institutions to find a quantification method for direct Nitrous Oxide emissions. Fugitive Methane — From the well head to the appliance, methane leaks directly into the atmosphere as the result of natural gas development and transmission. Some estimates of total system leakage are high enough to make natural gas consumption as bad a climate polluter as coal. A common protocol for amending the natural gas emissions coefficient to account for this leakage is not available. The City will consider updating the coefficient in future years when such information is vetted and available. Employee Commute — Emissions for employee commute can only be feasibly measured based on voluntary data submission. Since not every employee participates in the voluntary survey, the annual greenhouse gas emission estimates are based on incomplete data. Staff have in recent years, though, implemented more incentive opportunities which has enhanced participation. As more accurate data collection methods emerge and/or the City includes more incentives to support employee participation, emissions for employee commute will be more accurate in future inventory years. Procurement, Budget, and Finance — In accordance with the Local Government Operations Protocol, the City has only measured and recorded Scope 1 and 2 emissions, or emissions from sources owned and/or controlled by the City and from the purchased use of electricity, respectively. This leaves significant gaps in the ability to quantify emissions from activities related to procurement, budget, and finance. Therefore, those activities are not included in the 2019 inventory. As new data collection methods for Scope 3 emissions emerge to feasibly and accurately calculate those types of emissions, the City will explore integrating those quantification strategies in future inventory updates. City of San Luis Obispo Page A-26 Page 827 of 847 Public Review Draft Lead by Example: A Plan for Carbon Neutral City Operations Community Greenhouse Gas Emissions Inventory and Forecast Natural Solutions — This inventory does not account for ambient carbon emissions sequestered or emitted within the City's urban forest network or Greenbelt (except fuel use for maintenance equipment under the Fleet sector). In accordance with the Local Government Operations Protocol, the City does not currently estimate or inventory direct emissions as a result of landscape management practices, including the application of synthetic fertilizers. Sequestered emissions from reduction actions within the Natural Solutions pillar were estimated and are included in the Lead by Example: A Plan for Carbon Neutral City Operations reduction measure forecast. However, these sequestered emissions cannot be compared to a baseline or business as usual scenario like other sectors due to the fact that they are not inventoried. Staff will continue to explore feasible approaches to inventorying direct emissions under the Natural Solutions sector in future emissions inventory updates. List of Abbreviations CHa: Methane CO2: Carbon dioxide CO2e: Carbon dioxide equivalent EV: Electric Vehicle FTE: Full-time employee GHG: Greenhouse gas kW: Kilowatt kWh: Kilowatt-hour LGOP: Local Government Operations Protocol MTCO2e: Metric tons of carbon dioxide equivalent N20: Nitrous oxide PG&E: Pacific Gas & Electric Company VMT: Vehicle miles traveled WRRF: Water Resource Recovery Facility 3CE: Central Coast Community Energy City of San Luis Obispo Page A-27 Page 828 of 847 4 ti CITY OF SHR LUIS OBISPO LEIS 00 Recommendation As recommended by staff, adopt the Draft Resolution (Attachment A) to: 1. Approve Lead by Example: A Plan for Carbon Neutral City Operations (Attachments B-C) 2 3 Background ■ In August 2020, City Council adopted the Climate Action Plan for Community Recovery (CAP). ■ The CAP includes a goal of carbon neutral municipal operations by 2030 and foundational action to complete a carbon neutral municipal operations plan by summer 2021. ■ Community partners have called for the City to lead by example in climate action by modeling actions and sharing resources/lessons learned. El What does carbon neutral municipal mean?. operations GAT Y O.h CITY OF SHII DELIS OBISPO 5 Lars o� Accomplishments before Lead by Example ■ Solar electric vehicle charger installed at City Hall ■ Joined Central Coast Community Energy (formerly Monterey Bay Community Power) ■ High -efficiency LED lighting retrofit projects at 842 and 919 Palm garages ■ Retrofitted streetlights with high -efficiency LED bulbs ■ Purchase order issued for two electric buses ■ Retrofitted the Water Resource Recovery Facility for energy efficiency and installed a digester gas cogeneration engine for energy capture ■ Supported development of the regional anaerobic digester to generate clean power and compost from green waste ■ Purchased hybrid fleet vehicles, electric bicycles for fleet, and transitioned diesel fleet vehicles to renewable diesel ■ Initiated energy efficiency and energy generation project at the Water Treatment Plant , V. -161 ®,_ Contracted for new solar generating s lli4ems at three facilities 6 0 0 \lS CITY OF SAN LUIS OBISPO lw&mr- wi11,W- Vr Lead by Example �- 1. A Plan for Carbon Neutral City Operations �'7 July 2021 - 'k, Y d CITY OF SMI LUIS OBISPO LEI so Staff Engagement: Green Team ■ Focused on alignment, co -creation, and capacity building ■ Composed of staff from the Administration, Public Works, Utilities, Finance, Information Technology, Human Resources, and Parks and Recreation department ■ Convened full -group every other month and held sector working group sessions in between ■ Co -developed Lead by Example goals and actions Collaborated to include immediate actions in 2021-23 Financial Plan Greenhouse Gas Emissions Inventory F,k0% 0 Employee Commute Building and 730 MTCO 2e Facility Energy 21130 MTCO2e rem .CL. Fleet [In2,090 MTCO2e olid Waste 120 MTCO2e 9 Lead by Example Sectors Q 1. Building and Facility Energy R,A, 2. Fleet k 3. Employee Commute III 4. Solid Waste 16 5. Wastewater � 6. Natural Solutions W * Procurement, Budget, and Finance Sector Goals Building & Facility Energy: The City eliminates fossil fuel use in buildings and facilities. Fleet: The City eliminates fossil fuel use in vehicle and equipment fleet. Employee Commute: City employee commute is aligned with and substantially exceeds General Plan Mode Split Objectives by 2030. Solid Waste: City buildings, facilities, and operations are zero waste as defined by the Zero Waste International Alliance (ZWIA). Wastewater: The City minimizes direct emissions from the provision of wastewater to the maximum extent feasible. Procurement, Budget, and Finance: The City supports and accelerates achieving the carbon neutrality goal through procurement, budget, investment, and finance processes. Natural Solutions: The City optimizes carbon sequestration within the City's Greenbelt and Urban Forest system. Lead by Example Process Phase I: Immediate Ai What can be done now? y Phase II: Near Term Action What are priority Financial Plan actions? y Phase III: Long Term Planning What long term strategy is needed? y Phase IV: Stra How do we impler PLANNING PROCESS 12 Phase I: Immediate Action ■ Supported Fleet Replacement Policy update ■ Supported Active Transportation Plan review ■ Initiated conversations with PG&E and The Energy Network to explore on -bill financing opportunities for City buildings and facilities ■ Researched and assessed solution case studies for recycling contamination in public spaces ■ Developed community engagement materials for sewer lateral replacement policy ■ Updated Capital Improvement Project (CIP) intake form to include carbon neutrality considerations 13 Phase II: 2021-23 Financial Plan Capital Projects Programs • Install electric vehicle Initiate and complete chargers to support the Building and Facility Energy transition to all -electric fleet and Decarbonization Study vehicles in order to identify and • Complete installation of prioritize projects for City lighting retrofits at City Hall facilities. and Fire Station 1 using Review options to further available on -bill financing. integrate climate action into • Complete installation of the 2023-25 Financial Plan. solar panels at the City's Explore and launch, if Bus Yard, Fire Station 1, feasible, a payroll loan ro ram to and Sinsheimer Pool. P help P employees to P Y • Install Transit EV charging purchase bicycles and e- infrastructure bikes. • Complete Urban Forest Master Plan "/ 14 Phase III and IV: Piloting and Scaling Actions Building and Facility Energy 2021-23 FP ■ Energy 1.1 Initiate and complete Energy Master Plan. ■ Energy 1.2 Complete On -Bill Financing Projects to retrofit buildings and facilities. 2023-25 FP ■ Energy 2.1 Initiate implementation of Energy Master Plan, continue priority retrofits, and initiate hard -to -reach retrofits. ■ Energy 2.4 "Opt -up" to Central Coast Community Energy (3CE) Prime to receive 100% renewable energy. 2025-27, 2027-29 FPs ■ Energy 3.1 Continue implementing Energy Master Plan and continue hard -to -reach retrofits. 15 Carbon Neutrality Goal Achievement M 7,000 Forecasted Municipal Operations GHG Emissions "Business As Usual" 5.000 a� N 4,000 ` H 3,000 2,000 ` 1,000 Lead by Example + Natural** Solutions Offsets 111*4 2000 2005 2010 2015 2020 2025 Year Business as Usual Forecast (MTCO2e) Reduction Measure Forecast without Natural Solutions (MTCO2e) Lead by Example 2030 2035 1 Administrative Actions • Administrative Action 1: Lead by Example Update. The City will update Lead by Example every four years (concurrent with every other Financial Plan). The City will synch the update with the Community Plan so that each plan is updated in an alternating fashion concurrent with every Financial Plan. • Administrative Action 2: Plan Monitoring and Reporting. The City will monitor and report implementation to City Council on a regular basis. Equity in Implementation • Staff will develop an employee outreach and education program to share accessible information about Lead by Example and Council's operational carbon neutrality goal to staff outside of the Green Team. • Staff will facilitate employee feedback sessions to continue exploring opportunities and challenges in integrating and addressing diversity, equity, and inclusion through the work. • A DEI committee member will be invited to join Green Team meetings quarterly to facilitate collaboration around diversity, equity, and inclusion in Lead by Example implementation. • Staff will integrate diversity, equity, and inclusion at the initial stages of the next Lead by Example update in 2023 and intend to collaborate with the DEI committee throughout the planning process. Implementation and Next Steps ■ Lead by Example adoption is culmination of a long process, but it is just the beginning of the work ■ Next steps ■ Initiate the 2021-23 Financial Plan work program ■ Be highly visible ■ Continue to foster relationships ■ Inspire action 19 Recommendation As recommended by staff, adopt the Draft Resolution (Attachment A) to: 1. Approve Lead by Example: A Plan for Carbon Neutral City Operations (Attachments B-C) 20 0 ti CITY OF Sff n Luls OBISI'O Lars oo Emissions Sector Goals and Objectives Building & Facility Energy GOAL: The City eliminates fossil fuel use in buildings and facilities. OBJECTIVES: 1.Construct only all -electric new buildings and facilities. 2.Eliminate fossil fuel use to the maximum extent possible in existing buildings and facilities. Fleet GOAL: The City eliminates fossil fuel use in vehicle and equipment fleet. OBJECTIVES: 1. Achieve 100% all -electric light duty vehicles, excluding long- range and certain public safety vehicles. 2. Achieve 50% zero emissions medium and heavy-duty vehicles. 3. Achieve 100% all -electric transit fleet. 4. Achieve 100% all -electric equipment, excluding certain heavy- duty equipment, pumps, and backup generators. Employee Commute GOAL: City employee commute is aligned with and substantially exceeds General Plan Mode Split Objectives by 2030. OBJECTIVES: 1. Reduce single -occupancy commute miles 25% by 2025, 50% by 2030. 2. Of the remaining single -occupancy commute miles, achieve 25% via electric vehicle by 2025, 50% via electric vehicle by 2030. Wastewater GOAL: The City minimizes direct emissions from the provision of wastewater to the maximum extent feasible. Solid Waste GOAL: City buildings, facilities, and operations are zero waste as defined by the Zero Waste International Alliance (ZWIA). OBJECTIVES: 1. Achieve 90% reduction in landscape waste. 2. Achieve 90% reduction in office -based operation waste. Procurement, Budget, & Finance GOAL: The City supports and accelerates achieving the carbon neutrality goal through procurement, budget, investment, and finance processes. OBJECTIVES: 1. Establish sustainability criteria to guide vendor selection and other procurement activities. 2. Establish criteria to guide budget development and selection of CIPs. 3. Achieve 100% ESG investments across the City's portfolio. 4. Establish approach to enhancing circularity in City procurement and operations. Natural Solutions GOAL: The City optimizes carbon sequestration within the City's Greenbelt and Urban Forest system. OBJECTIVES: 1. The City has a healthy multi -benefit Urban Forest system that increases local carbon sequestration. 2. The City open space and Greenbelt support regenerative agricultural practices and are managed to sequester carbon, where appropriate. 3. The City's landscape management practices are climate friendly and utilize compost from the regional anaerobic digester. Environmental Review ■ Lead by Example is a measure and supportive action within the scope of the project covered by the already adopted IS/ND for the Climate Action Plan for Community Recovery and includes quantified actions to address emissions that were accounted for in the community inventory and forecast. Draft Initial5ludy-Negaliive Declaration ow—dra 6t/MSi�tils Ohl'ape 990 Palm 54—C San Luis Obispo. CahlwMa 93401 prcymed by Rln[en CanWnMs, 4Ee M30 M-t"SErctt, Soil. D San Luis Obispo, Caid—a 9341 J-24 2020 rRINCON CUNSLILTANTS, INC. E"s—sl R.miwl=Wwen V-23