REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Amending Silicon Valley Power's Rules and Regulations to Remove the Requirement for New or Modified Self-Generation Facilities to Utilize Renewable Generation and Fuel Sources [Council Pillar: Sustainability]
Report
BACKGROUND
On May 7, 2019 the City Council approved Resolution 19-8701 which required new or modified self-generation facilities to utilize renewable generation and fuel sources. These amendments to Silicon Valley Power's Rules and Regulations aligned with the City and State goals and requirements for renewable and/or GHG free energy. The changes were intended to create a greener Santa Clara and help to address environmental and climate change issues. Silicon Valley Power has already taken the initiative by proactively ensuring all new energy acquisitions are renewable and/or GHG free. The proposed change encouraged other generators within the City to do the same.
Bloom Energy Corporation (Bloom) sued the City based on the California Environmental Quality Act (CEQA). The lawsuit stated that the City's CEQA determination, Exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15061(b)(3), was not sufficient and additional CEQA analysis was required.
DISCUSSION
Bloom challenged the City's restriction of Natural Gas Bloom Fuel Cells primarily contending that Bloom boxes emitted less greenhouse gas emissions (GHG) than Silicon Valley Power. The City evaluated Bloom's claim and concluded that Silicon Valley Power produces less GHG than Bloom Fuel Cells. The Court agreed with the City findings and stated that "The Court finds the City's analysis of average CO2e emissions is reasonable and supports the conclusion reached"
While the Court found that Bloom's Natural Gas Fuel Cells emit more GHG than Silicon Valley Power, the Court held that the City must further evaluate potential NOx and SOx emissions and back-up generator use. The City, therefore...
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