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Toward Smart Energy Cities: 13 Policy Options for California Cities to Ensure Cheaper, More Reliable, Cleaner Energy Use 4/30/2002 Toward_Smart_Energy_Cities.pdf

Executive Summary

As the new home of CALPIRG's environmental work, Environment California can be contacted with any questions regarding this report.

Memories of California’s energy problems last winter, when energy prices skyrocketed and rolling blackouts swept through the state, are still uncomfortably fresh. Last year’s debacle demonstrated the degree to which cities and towns depend upon reliable and affordable sources of energy. Fortunately, local governments have choices that can improve their energy security and reliability, save taxpayers money, lower energy costs for their residents, and reduce the environmental impacts of their energy use and production.

This report gives an overview of the energy policy challenges faced by local governments along with some very promising success stories. It then lays out policy prescriptions designed to help them reduce energy consumption and move toward cleaner energy sources. These policy options have already been put into practice by many cities throughout the state and around the country, and have been included in this report because of their demonstrated success. Most local governments have taken, at least, limited steps to promote energy conservation. However, there remain incredible opportunities to achieve dramatic savings, efficiency gains, and pollution reductions by putting in place new policies and taking advantage of rebates and incentive programs. The report concludes with a list of agencies offering rebates and a listing of additional informational resources for interested cities.

When blackouts hit, cities and their businesses pay the price.

• During the winter of 2000-2001, the California Independent System Operator (ISO) issued 32 consecutive days of Stage 3 warnings.

• The winter also saw six rolling blackouts hit the state.

• Each blackout can cost businesses using certain computer systems as much as $20,000 to $6 million an hour.

• California relies heavily upon a single fuel source, natural gas, to provide our power. This puts cities around the state at risk for more price spikes and blackouts.

Rising energy costs can put significant dents into city coffers.

• The City of San Diego spent $18 million on energy in FY 2000, and projected a FY 2001 budget of $28.1 million. However, skyrocketing energy prices caused actual 2001 energy costs to jump to approximately $36.7 million.

• The San Jose Chamber of Commerce estimates that the energy crisis cost the state between $1-5 billion.

Generating energy by burning fossil fuels and using nuclear power causes severe environmental and public health problems.

• 90% of California’s electricity and almost 100% of our transportation fuel comes from unsustainable sources like fossil fuels and nuclear power.

• Fossil fuel burning power plants are the nation’s largest stationary source contributors to global warming emissions.

• 95% of Californians breathe unsafe air, according to state and federal health standards, and 60% of smog-forming pollutants come from cars and trucks.

• Nuclear plants account for 17.9% of all energy produced in the state. These plants produce thousands of tons of nuclear waste.

There are many ways in which cities can reduce energy spending, increase energy reliability, and decrease pollution, including:

1. Aggregate electricity load to promote greener options and more local control.

2. Build locally-owned renewable energy facilities.

3. Adopt green building codes with minimum renewable and efficiency standards for public and private buildings.

4. Update streetlights and traffic signals to make them more energy efficient.

5. Improve the fuel efficiency of city fleets.

6. Retrofit government buildings to make them more energy efficient, including upgrading appliances, air conditioning, boilers, and heating/ventilation systems.

7. Evaluate transportation and land use policies to promote healthier and more efficient communities.

Several California cities have already become smart energy leaders by putting some of these policies into practice, with demonstrated success stories.

• San Francisco, CA, will become the worldwide urban leader in solar power within the next decade. Voters approved two revenue bond measures to finance 50 Megawatts of solar panels to be installed by a private contractor on residences, businesses, and government facilities. Altogether, these bonds will finance enough clean energy production to power 10% of the entire city’s combined base energy use or 5% of peak energy use.

These bonds are structured as revenue bonds. Most cities in California already hold revenue bond authority and do not require placing a measure on the ballot for voter approval.

Other cities can also become clean energy success stories by utilizing any or all of the thirteen options discussed in this report. They can provide leadership for cities across the state and the nation as model municipalities taking action to guarantee themselves a more affordable, reliable, cleaner energy future.