Take meaningful climate change action.

Climate Change

DEVELOP AND IMPLEMENT A CLIMATE ACTION PLAN

Point of Contact: Andy Bertelsen / Nicole Antonopoulos Woodman Regional Plan  Goal E&C.1. Proactively improve and maintain the region's air quality  Goal E&C.2. Reduce emissions  Goal E&C.3. Strengthen community and natural environmental resiliency through climate adaptation efforts.  Goal E&C.4. Integrate available science into policies governing the use and conservation of Flagstaff's natural resources.  Goal T.3 Provide transportation infrastructure that is conducive to conservation, preservation, and development goals to avoid, minimize, or mitigate impacts on the natural and build environment  Goal E.1. Increase energy efficiency  Goal E.2. Expand production and use of POLICY IMPLICATION Healthy forests, prepared for and resilient to change from environmental factors, including Climate Change, is fostered by:  Application of the City's Forest Plan and the Greater Flagstaff Community Wildfire Protection Plan (adopted by Council in 2005),  Implementation of on-going forest treatment efforts and the Flagstaff Watershed Protection Plan (passed by voters in 2012), and  Support of multi-party collaborative efforts (ex: Greater Flagstaff Forests Partnership [GFFP] and Four Forest Restoration Initiative [4FRI]) and the National Wildfire Cohesive Strategy

Ongoing support for initiatives identified in the climate action plan. Fiscal implications will be identified during the FY 19 budget process. BUDGET IMPLICATION Annual support of the Fire Department’s Wildland Fire Management program CLIMATE CHANGE Take meaningful climate change action.

S.M.A.R.T Y ☒ N ☐ if no, explain Western Adaptation Alliance, Arizona Department of Environmental Quality, Willow Bend Environmental Education Center, Coconino County, Friends of Flagstaff's Future, Northern Arizona University, University of Arizona, Arizona State University, Climate Assessment for the Southwest (CLIMAS), National Oceanic and Atmospheric Association (NOAA), National Weather Service, Carbon Disclosure EXTERNAL Project, neighborhood associations, faith-based organizations, PARTNERS Flagstaff Unified School District, and Northern Arizona Intergovernmental Public Transportation Authority.

State, US Forest Service, Greater Flagstaff Forest Partnership, The Nature Conservancy, AZ Wildlife Federation, Open Space Stakeholders, community members at-large

TIMELINE Short-term, Mid-term, Long-term MEASUREMENT  Develop community plan and begin implementation  Reduce generated from City operations o Measure greenhouse gas emissions generated by City operations o Reduce greenhouse gas emissions 50% from 2005 levels by 2030  Number of acres treated

UPDATE  Section staff have been working with community members since March 2017 to develop a scope for the Flagstaff Climate Action and Adaptation Plan ("Plan"). A Steering Committee has been formed to advise the Plan, and monthly ‘Coffee and Climate’ events are being held to interact with the public.  Plan development formally began in October, with an initial draft due to Council by June. Current work includes analysis of the City’s historical greenhouse gas inventories, creation of a climate change impacts scenario for Flagstaff, and the development of a Public Engagement Plan.  A list of shovel ready projects will be presented to City Council for consideration as part of the FY 19 budget cycle. Projects identified could be started prior to the finalization of the plan.  The first of three Climate Plan Open Houses will be held in late January. CLIMATE CHANGE Take meaningful climate change action.

BECOME A 100% RENEWABLE ENERGY CITY AS AN ORGANIZATION AND A COMMUNITY

Point of Contact: Andy Bertelsen / Nicole Antonopoulos Woodman City Council Action  Resolution 2010-16: Municipal energy efficiency implementation and renewable energy development  Resolution 2014-09: Sustainable Building requiring all occupied City-owned new construction and major renovation of existing facilities achieve certification in the most recent version of LEED (Silver) or Green Globes (3 Globes) or Living Building Challenge (full certification)

Strategic Priority Goal Alignment - 3.1 POLICY IMPLICATION  Foster a resilient and economically prosperous city - Enhance the organization's fiscal stability and resourcefulness

Regional Plan  Goal E.1. Increase energy efficiency  Goal E.2. Expand production and use of renewable energy  Goal E&C.1. Proactively improve and maintain the region's air quality  Goal E&C.2 Reduce greenhouse gas emissions

Significant investment in energy efficiency and into the development of renewable energy is necessary to achieve this goal. Financing options being considered include bonding, self-funding, power BUDGET IMPLICATION purchase agreement, and tax exempt lease purchase. Funding for such projects do not currently exist.

S.M.A.R.T Y ☒ N ☐ if no, explain Arizona Power Authority, Arizona Public Service Company (APS), EXTERNAL PARTNERS Flagstaff residents, and community members. Renewable Energy Benchmarks are set forth in the Energy Efficiency and Renewable Energy Resolution, as approved in 2010, and can be reflected in the Performance Measurement targets. TIMELINE Resolution 2010-16 Municipal energy efficiency implementation and renewable energy development  35% renewable energy generation by 2020  50% renewable energy generation by 2050 CLIMATE CHANGE Take meaningful climate change action.

MEASUREMENT  Renewable Energy Benchmarks are set forth in the Energy Efficiency and Renewable Energy Resolution, as approved in 2010, and are reflected in the Performance Measurement targets.  Resolution 2010-16: Municipal energy efficiency implementation and renewable energy development o 35% renewable energy generation by 2020 o 50% renewable energy generation by 2050  Reduce the City’s internal energy consumption o Measure energy consumption per square foot and renewable energy generation o Reduce municipal energy use 15% from FY 2009 levels to 51,927 MWh  Increase the City’s renewable energy generation o Measure renewable energy generation o 30% renewable energy by 2020  Reduce greenhouse gas emissions generated from City operations o Measure greenhouse gas emissions generated by City operations o Reduce greenhouse gas emissions 50% from 2005 levels by 2030  Secure renewable energy generation off-site/micro-grid/etc.  Create a “Clean Action Advisory” ad-hoc group

UPDATE  Lake Mary Water Treatment Plant and Rio de Flag Water Reclamation Plant began receiving hydroelectric power from Hoover Dam in October 2017.  City Staff have partnered with a statewide coalition to push for increased renewable energy development and procurement options in Arizona. The coalition is working with APS to draft a charter agreement.  Staff is currently exploring potential partnerships with other governments in our region that could facilitate the building of utility- scale solar installations.  Staff are completing an energy rate analysis to ensure that City electric meters/accounts are on the best rate structure, including time of use. CLIMATE CHANGE Take meaningful climate change action.

ACHIEVE FINANCIAL DIVESTMENT FROM FOSSIL FUELS

Point of Contact: Rick Tadder Investment Policy: Add language to the City Investment Policy to exclude investments in corporations that are related to fossil fuels such as oil, , and .

Investment Contract: We have a company managing our portfolio of investments of approximately $89M. Of our current investments, we had one corporation that would meet this exemption; $1.6M was invested in Exxon Mobile Corp and was scheduled for maturity next year.

The Investment Policy was changed by the Management Services Director in January to exclude investments in corporations that are related to fossil fuels. Staff has directed our investment company to POLICY IMPLICATION discontinue future investments in corporations, and to sell and reinvest the holdings in Exxon Mobile Corp earlier than the maturity date.

Local Government Investment Pool (LGIP): This investment type is used for our bonded projects and our landfill closure set aside. Investment practices are managed by the State Treasurer.

Certificates of Deposit (CDs): We currently invest $5M in a Community Banking Program with Western Alliance Bank. These investments are part of the Federal Deposit Insurance Company (FDIC) and are not directly invested in any fossil fuel corporations.

BUDGET Limiting our investment opportunities will reduce our ability to IMPLICATION maximize interest revenues. S.M.A.R.T Y ☒ N ☐ if no, explain EXTERNAL PARTNERS PFM Asset Management LLC., State Treasurer TIMELINE Short-term MEASUREMENT Elimination of investments related to fossil fuels UPDATE Completed CLIMATE CHANGE Take meaningful climate change action.

SPONSOR AND SUPPORT STATE OR FEDERAL LEGISLATIVE ACTION THAT COMBATS CLIMATE CHANGE

Point of Contact: Andy Bertelsen / Nicole Antonopoulos Woodman Initiate and support statewide legislation that enables Property Assessed Clean Energy (PACE), Community Solar, Deregulation, and climate action.

Initiate and support federal legislation that enables climate action POLICY IMPLICATION and protects the Department of Energy, Environmental Protection Agency, National Oceanic and Atmospheric Administration, FEMA (Pre-Disaster Mitigation), Low Income Home Energy Assistance Program, Weatherization Assistance Program, State Energy Program, and NASA (climate change research). BUDGET Not known at this time IMPLICATION S.M.A.R.T Y ☒ N ☐ if no, explain Western Adaptation Alliance, Urban Sustainability Directors EXTERNAL PARTNERS Network, and Southwest Energy Efficiency Project (SWEEP), among several others TIMELINE Short-term, Mid-term, Long-term MEASUREMENT Advancement in building policy support UPDATE  In a unanimous vote at the September 5, 2017 City Council meeting, Flagstaff became Arizona’s first city to call for national revenue- neutral carbon fee and dividend legislation.  Mayor Coral Evans joined with over 200 other U.S. Mayors to adopt, honor and uphold the landmark Paris Climate Agreement by signing the Climate Mayors pledge. CLIMATE CHANGE Take meaningful climate change action.

UPDATE ENERGY CODE

Point of Contact: Andy Bertelsen / Nicole Antonopoulos Woodman / Mark Landsiedel Regional Plan  Goal E.1. Increase energy efficiency  Goal E.2. Expand production and use of renewable energy  Goal E&C.1. Proactively improve and maintain the region's air quality POLICY IMPLICATION  Goal E&C.2. Reduce greenhouse gas emissions

Would require adoption of advanced standards in the International Code (IECC), Title 4 Building Regulations, and engineering standards. Initial investment in construction would increase, however, the long- BUDGET term benefits to the end user will be reduced energy and water bills, IMPLICATION health, and comfort. S.M.A.R.T Y ☒ N ☐ if no, explain Northern Arizona Building Association (NABA), Chamber of EXTERNAL PARTNERS Commerce, building science professionals, investment property owners, and realtors The City adopted the 2009 version of the IECC in 2012. Currently, TIMELINE the City is on a six-year adoption cycle MEASUREMENT Advancement in energy efficiency of new building stock UPDATE Staff will be presenting an informational update to City Council.