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ESA Memo to City of Pleasanton:June 13,2016 forming a regional CCA program.This is consistent with our recommendations elsewhere in this memo (See"Recommendations for Further Study"). The CAP sets a city-wide GHG emissions reduction target of 15%below the City's 2005 baseline by 2020.With respect to renewable energy,the CAP includes an objective to increase renewable energy generation.The CAP acknowledges the potential benefits of City participation in a CCA,and includes an Action for additional study to assess whether joining a CCA makes sense for the City. The CAP also includes Actions to expand local solar generation through supportive ordinances and permitting processes,more promotion of existing rebates and financing options,and continued participation in the Solar Cities program,which has been very successful in expanding local rooftop solar PV installations.The CAP also call for forming a community solar cooperative for leveraging economies of scale in solar panel purchasing and installation,and neighborhood solar grids for charging electric vehicles. The City's 2005 baseline GHG emissions inventory,as presented in the CAP, shows that the electricity used by residential,commercial and industrial buildings in the City represented approximately 155,000 metric tons of carbon dioxide equivalents (MT CO2e),with the largest contribution(68%) from commercial/industrial use(including direct access customers),followed by residential use (30%) and municipal operations (2%).3 Looking to future years,the CAP predicts an overall 41%increase in emissions from electricity by 2020 under business-as-usual conditions,4 to approximately 219,000 MT CO2e,with the commercial/industrial sector exhibiting the greatest increase(55%). The CAP presents an adjustment for the state RPS5 that reduces the 2020 forecast for electricity emissions by 21%,to approximately 173,000 MT CO2e.CAP measures for local energy efficiency are expected to further reduce annual electricity emissions by approximately 25,000 MT CO2e,while expansion of local renewable energy is estimated to reduce emissions by approximately 13,000 MT CO2e,bringing the City's 2020 target for electricity-related emissions down to approximately 135,000 MT CO2e. As part of CAP implementation and monitoring,the City is committed to updating its community inventory at least every five years.The first revision,for 2010,showed that total community-wide GHG emissions had decreased overall by approximately 2.9%in the five years since 2005.Table 2 provides a summary of results,including a 20%drop in emissions from commercial/industrial electricity usage,and a 12%drop in emissions from residential electricity usage.6 These reductions, achieved by both efficiency improvements and expansion of local rooftop Solar PV systems,exceed the expectations set by the CAP for 2010,and if maintained will enable the City to meet its 2020 target for electricity emissions.The revised inventory also reports a much lower number for Direct Access (DA) electricity based on PG&E data,and notes that DA electricity was likely over-estimated in the 2005 inventory using County-wide DA data provided by the CEC and assuming that Pleasanton's share of DA electricity was proportional to its population ratio with the rest of the County. In conclusion,participation in the Alameda County CCA is likely to enhance the ability of the City to achieve its Energy and Climate Goals,adding to the demonstrable progress the City is already making toward its energy efficiency,local renewables,and GHG reduction goals. 3 City of Pleasanton Climate Action Plan,2012. 4 Not accounting for California's Renewables Portfolio Standard(PRS)and local measures to increase energy efficiency and expand local renewable generation. 5 Assumes 33%carbon-free utility-supplied electricity by 2020. 6 City of Pleasanton 2010 GHG Inventory Update;April 19,2013. 8