The Energy sub-Element of the General plan is the City’s short-and long-term strategy for dealing with impacts of non-renewable energy at the local level. The current Energy Sub-Element was adopted in 1981 and addresses energy conserving policies related to transportation, energy consumption by housing and industries, solar energy and environmental management such as water resources management, solid waste management and recycling. Since its adoption there have been regulatory changes and various "energy" practices incorporated at all levels of government.

Staff is recommending that the Energy Sub-Element be retired because its policies are now incorporated into newer programs and policy documents more specific to each energy-saving function. In its place, staff recommends that a more flexible energy policy be developed which addresses more current energy issues. Staff recommends that Council adopt a resolution retiring the Energy Sub-Element and direct staff to prepare a new energy policy. A new energy policy would provide guidance to both staff and policy makers.

The City's current Energy Sub-Element was adopted in 1981 and has not been updated since then. This Council Study Issue is before the Council as a routine item to periodically update the General Plan. The study issue paper is attached (Attachment 1). In the study issue paper, staff suggested that the Energy Sub-Element may no longer be necessary.

The Planning Commission considered this issue at a public hearing on November 22, 1999. By a 6-0 vote, the Commission recommended that the Council adopt a resolution retiring the Energy Sub-Element and direct staff to prepare a new energy policy.

The City's existing energy goals, policies and action statements are covered in the 1981 Energy Sub-Element of the General Plan as well as other General Plan Sub-Elements and the Administrative Policy Manual. A comprehensive list of current energy policies is in a binder located in the Community Development Department.

Since the Energy Sub-Element has not been updated since 1981, it is not written as a program document like the City’s newer sub-elements. As apparent from the driving assumptions listed below, it is rather an "activist" style document written in response to the energy crises of the 1970’s. The goals, policies and action statements within the 1981 Energy Sub-Element were based on certain assumptions, as follows:

1. The citizens of Sunnyvale desire to conserve energy without significantly changing their standard of living.
2. There is a limited supply of energy.
3. The cost of energy will increase in response to the limited supply and on-going demand.
4. No major new sources of "cheap" energy will be found in the immediate future.
5. A steady supply of energy is crucial to the economic well being of Sunnyvale.
6. Government should take a role in assuring a steady supply of energy to the community.
7. Energy availability is a worldwide concern requiring cooperation beyond Sunnyvale’s borders.
8. In order to cope with the limited supply of energy, there must be cooperative efforts between government, the citizenry, and the private sector.
9. The policies and programs of this sub-element can not solve the energy situation, but can provide relief to its impact on our community.

The intent of the Energy Sub-Element was to act as a place marker for the City’s energy policies until new programs could be put into effect to address energy concerns. The Energy Sub-Element states that as other sub-elements are developed, the goals, policies and action statements of the document will be integrated. Since the Energy Sub-Element was adopted, there have been a number of newer sub-elements, documents and code requirements that have been created that encompass and expand on the programs initiated with the first Energy Sub-Element as follows:

The Air Quality Sub-Element was adopted in 1993 and establishes a policy framework to reduce air pollutant emissions from existing sources in Sunnyvale. Policies in the Sub-Element call for a reduction of emissions from City of Sunnyvale fleet vehicles. In response, the City has conducted a study for introduction and use of alternative fuels within the motor vehicle fleet and continues to explore methods for achieving fuel economy and air quality standards of the City’s fleet.

The Land Use and Transportation Element of the General Plan was adopted in 1997 and establishes goals, policies and action statements that guide the City’s long range land use planning and transportation decisions. Regarding energy, this Sub-Element includes a number of policies related to maintaining an efficient transportation system that improves fuel economy of autos on the road that in turn promotes better air quality. Many of the current guiding policies are directly related and expand on policies that were originally established in the 1981 Energy Sub-Element.

The Solid Waste Sub-Element was adopted in 1996. The purpose of this sub-element is to establish the policy framework for the development for the solid waste management programs in Sunnyvale. The original Energy Sub-Element contained a number of policies related to recycling. The energy related issues of solid waste source reduction and materials recycling are now covered in the Solid Waste Management Sub-Element.

Water conservation was also encouraged in the original Energy Sub-Element. There is now a more recent 1996 Water Resources Sub-Element which addresses issues such as maintaining an efficient water distribution system and promoting water conservation.

Title 24 of the California Building Code provides efficiency standards for residential and nonresidential buildings. It was established in 1978 in response to a state mandate to reduce California’s energy demand. Title 24 is a state level program for achieving the building energy efficiencies addressed in the original Energy Sub-Element. Title 24 standards are updated periodically to allow consideration and possible incorporation of new energy efficiency technologies and methods. Title 24 requirements are administered by the Building Division.

Title 16 of the Municipal Code requires new residential construction to make use of solar heating. As allowed by code, the City has been granting exemptions to this requirement, because it has not proved to be cost effective over a 20-year life cycle. There has not been a recent update to State formulas determining the cost effectiveness of solar heating

Solar heating policies are now covered in the Community Design Sub-Element. The City has also adopted Zoning Code provisions to protect solar heat and light access to existing properties. Municipal Code Section 19.56 requires that roof top solar access to adjacent residential properties be protected when new development occurs. Title 16 of the Municipal Code also addresses requirements for solar heating.

The City now has an adopted policy for energy conservation for city-owned facilities and equipment in the Administrative Policy Manual. This policy is currently being updated. The policy establishes operational guidelines for lighting, heating, operating vehicles in an energy efficient manner and employee incentives for reduction of energy in their travel to and from work.

Although energy polices from the past are now incorporated into standard City practices and procedures, there are newer issues that the City should be actively researching and acting on, including:

• Localized small scaled power plant development
• Determining sources for purchasing energy for City use
• Using energy as an economic development tool
• Selling the City’s own surplus energy
• Deregulation of the electric industry

Some of the issues/opportunities related to these ideas are already being explored in some departments but without the benefit of updated umbrella policies adopted by Council. It is apparent to staff that the City would benefit from establishing policies on current energy issues. Development of an energy policy is both timely and appropriate.

• Localized Small Scale Power Plant Development

There is a trend towards developing small-scale electric generating plants closer to the energy user. For example, the City, or other user, may find it more cost effective to purchase natural gas and generate its own electricity than to buy electricity through another provider. This approach would require development of an on-site small-scale electric generating plant. In addition to potential cost savings, there are benefits in terms of having control over one's power source in case of an emergency on the grid. The City does not have policies or regulations in place to address the land use and aesthetic issues associated with this trend.

• Determining sources for purchasing energy for City use ("green" fuel sources)

In addition to price considerations, there are a number of power sources available to the City that are considered "green", or renewable sources, such as geothermal, solar and wind. The City does not have criteria in place to determine which sources to buy power from.

• Using Energy as an Economic Development Tool

The price of energy is a factor that businesses consider when deciding where to locate. City's like Santa Clara and Palo Alto are municipal utilities and can offer lower energy prices to businesses in their jurisdictions. Reducing energy costs to businesses can be an economic development tool. There may be other ways to provide less expensive energy such as collective purchasing or using small-scale localized power plants. The City currently has no policy on approaching economic development using energy.

• Selling the City's Surplus Energy

The City currently produces 1.6 megawatts of energy at the power generation facility at the land fill. The water pollution control plant currently uses 3/4 of the City's produced energy. There is no policy at this time directing the use of surplus energy determining if it should be used internally or sold back to the grid. This issue may become more significant if the City also explores the use of a localized small-scale generation plant.

• Deregulation of the Electric Industry

Deregulation opens up new options for how the City buys or generates electric power. There are currently no policies addressing how the City should fill its electrical needs. It needs to be determined how large a role the City wants to play in providing or brokering power for its own use, its residents and its businesses.

There is no fiscal impact associated with retiring the original Energy Sub-Element. Preparing a new policy will result in the cost of staff time for research and development. Long term fiscal savings or costs would be addressed in the new policy.

This item was noticed in the local newspaper. The Planning Commission and City Council agendas and staff reports are posted on the City's web site. A copy of this report was also made available at the City of Sunnyvale Library.

Staff identified three alternatives for updating the 1981 Energy Sub-Element. Each of these alternatives varies in time and cost associated with the preparation.

1. Adopt a Resolution to retire the Energy Sub-Element because adequate energy and cost conserving practices are now covered in most other city plans and policies.
2. Create a new energy policy focused on current energy issues associated with the purchase, generation and distribution of power by/within the City as well as other issues in response to current State and Federal programs such as utility deregulation. This policy would not be a Sub-Element but a more flexible document that can be easily updated as the energy issues change.
3. Simply update the Energy Sub-Element with new background data on existing energy conservation programs and practices and pulling together a new sub-element that is a definitive collection of City energy related policies from other existing documents.

Staff recommends Alternatives 1 and 2. Energy policies no longer need to be addressed in a separate element of the general plan. Energy conservation policies have permeated other City policy documents. A separate policy is needed to focus on the issues related to the energy coming into and out of the City. This type of policy would require more frequent updating in order to stay current with State and Federal regulations. Therefore, staff recommends that the Energy Sub-Element be retired, and that Council direct staff to prepare an energy policy.

Preparing a new energy policy will involve work by a number of divisions and departments including, Public Works, Community Development, Parks and Recreation, and Finance. Staff recommends that the Public Works Department prepare the new energy policy. The time frame for preparation of the new policy could be considered and ranked at the Council study issue workshop in December.

Prepared by:

Gerri Caruso
Associate Planner

Reviewed by:

Gail A. Price
Principal Planner

Reviewed by

Trudi Ryan
Planning Officer

Reviewed by:

David S. Boesch
Director of Community Development

Approved by:

Robert S. LaSala
City Manager

Attachments:

1. Council Study Issue Paper
2. Resolution
3. Planning Commission Draft Minutes of Nov. 22, 1999