Adoption of a Resolution Approving and Attesting to the Veracity of the City's 2024 Power Source Disclosure and Power Content Label Reports. CEQA Status: Not a project

Summary

The City Council is asked to adopt a resolution approving and attesting to the veracity of the City's 2024 Power Source Disclosure (PSD) and Power Content Label (PCL) Reports. This annual administrative action is required by Senate Bill 1305 to ensure transparency in electricity sources and allows the City of Palo Alto Utilities (CPAU) to be exempt from a third-party audit by the California Energy Commission (CEC).

The reports cover both the standard carbon neutral electricity product and the voluntary PaloAltoGreen product. In 2024, CPAU's hydroelectric generation was 30% greater than average. The REC Exchange Program generated $10.86 million in net revenue, with $2.83 million specifically from the REC Exchange Program to be set aside for local decarbonization initiatives.

While the City's power supply remained 100% carbon neutral and compliant with the state's Renewable Portfolio Standard, the reported share of "eligible renewables" for the standard power mix on the PCL was 38% (down from 65% in 2018). This reduction is due to CEC regulations that categorize out-of-state renewable energy credits (RECs) as "unspecified power," even though they are from renewable sources. The 2024 standard power mix included 59% Large Hydroelectric, 37% Solar, 1% Wind, 1% Eligible Hydroelectric, and 2% Unspecified Power.

Citizen Impact

This resolution ensures transparency in the City's electricity sources and confirms that Palo Alto's power supply remains carbon neutral. Revenue generated from the REC Exchange Program will be reinvested into local decarbonization initiatives, benefiting the community's environmental goals.

Confidence

high