5. Climate Fee Case Studies — original pdf

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Climate Fee Joint Sustainability Committee Rohan Lilauwala, Climate Project Manager Office of Sustainability June 26, 2024 1 What are we really trying to achieve? ● Austin is a leader in climate action, one of only four major US Cities with the most aggressive climate goal (net-zero by 2040), and one only five that centers equity. ● Community members, organizations, activists, stakeholders, and City Council are pushing to make progress on climate and environmental goals. ● Creating and passing plans (like the Austin Climate Equity Plan) with no budget and funding plan sets us up for failure. ● Council Resolution No. 20240215-025 forced us to have a conversation around what projects should be priorities and how could pay for them. 2 What are we really trying to achieve? Status Quo: Identify Projects, then Find Money ● Too many projects, hard to prioritize, hard to categorize ● Maybe we find money, maybe we don’t ● No matter how much money is found, stakeholders are unhappy because everything won’t be funded and the process is unclear 3 What are we really trying to achieve? Status Quo: Identify Projects, then Find Money Climate Fee: Have Money, then Identify and Spend on Projects ● Too many projects, hard to prioritize, hard to categorize ● Maybe we find money, maybe we don’t ● No matter how much money is found, stakeholders are unhappy because everything won’t be funded and the process is unclear ● We have a set $ amount to spend and that’s clear to everyone ● Generate project ideas, analyze them, ● prioritize and fit into the budget allowed Some don’t get what they want, but stakeholders feel heard, spending and process is transparent 4 Portland Clean Energy Fund ● Funded by a 1% gross receipts tax on large retailers, approved by voters in 2018 with 65% in support, with support of community-based organizations. ● Portland Clean Energy Fund supports clean energy projects and job training, rooted in climate and environmental justice. ● Guided by the PCEF committee,charged with evaluating the effectiveness of the program in achieving the goals laid out in the Climate Investment Plan. 5 Portland Clean Energy Fund ● Expects to raise $750 million by 2028, spending plan passed in 2023, and features: ○ Planting 25,000 trees in heat-vulnerable neighborhoods to increase tree canopy. ○ Adding energy-efficient and renewable energy technologies in new and redeveloped affordable multifamily housing. ○ Making schools more resilient. ○ Matching funds for federal grant applications. ● Included an open call for $150 million worth of projects in response to unexpected additional revenue in 2024. charging. ● Total cost of meeting climate goals in Portland’s Plans estimated at $49 billion over 30 years ○ These only include goals related to energy efficiency, solar, tree canopy, and electric vehicle 6 Portland Parking Climate and Equitable Mobility Transaction Fee ● 20 cent fee on parking meter transactions to send a price signal about the costs of driving. ● Generates $2 million annually. ● Funds generated to be invested in expanding transportation affordability programs ahead of further parking rate increases, as well as other climate and equity work. 7 Denver Climate Protection Fund ● In 2020, Denver voters approved a ballot measure to raise the sales tax by 0.25% by a 62-38 margin to fund projects limited to the following by ordinance: Job creation and workforce training. Solar power, battery storage and other renewable energy technology. ○ ○ ○ Neighborhood-based environmental and climate justice programs. ○ Climate adaptation and resiliency programs. ○ Affordable, clean, safe and reliable transportation choices, like walking, biking, transit, electric vehicles and neighborhood-scale transit. Energy efficiency for homes, offices and industry. ○ ● 50% of funding to go to projects directly in the community with a strong lens toward equity, race and social justice. ● Priorities determined by Sustainability Advisory Council and 6 standing committees (120 people). 8 Denver Climate Protection Fund ● Denver Office of Climate Action, Sustainability and Resilience responsible for spending approximately $40 million a year. ● Fund produces an annual report for transparency and accountability purposes. ● According to Denver’s Climate Action Plan, the city needs $200 million a year to meet its emission-reduction goals. 9 Minneapolis Climate Legacy Initiative ● Funded through an increase in the utility franchise fee approved by City Council to fund the new Climate Equity Plan, beginning in 2024. ● Residential electricity and rates increased 0.25% and 1% to 5.25% and 6%. ● Generates approximately $10 million a year to triple the city’s funding on climate action. ● Commitment that at least 40% of investments will go to environmental justice communities, Green Zones, and projects serving low-income populations (to date - 60%). 10 Minneapolis Climate Legacy Initiative ● Initiative administered the City’s Office of Sustainability and overseen by the Climate and Infrastructure Committee of the City Council. ● Projects include: 1. Green jobs and training 2. Renewable and efficient energy in homes and businesses 3. Community outreach and engagement 4. Planting trees 5. Capturing carbon and storing with biochar 6. 7. Electric vehicle charging stations 8. Administration and policy Local food and waste reduction 11 Fees in Austin (Residential) ● Clean Community Fee: $9.70 / month - funds Street sweeping, Litter Abatement, Recycle & Reuse Drop-off Center, Business outreach, Austin Reuse Centers, Zero waste program development, Clean Austin, Dead animal collection, Boulevard sweeping. Also funds the enforcement of some City codes and graffiti abatement. ● AE Community Benefit Charge: $0.79/kWh - helps fund the Customer Assistance Program, street lighting, and energy efficiency programs. ● Water Community Benefit Charge: $0.15/1000 gallons - used to fund the Austin Water portion of the Customer Assistance Program. ● Water Go Purple Community Benefit Charge: $0.15/1000 gallons - funds the increased use of reclaimed water. ● Transportation User Fee: $12.46-17.87 / month - funds the maintenance and repair of roadways, signs, signals and markings, sidewalks and urban trails. 12 Path Forward A new tax faces political and legal challenges. Options to address those challenges: ● Add Environment / Climate to one of these existing fees, and increase the fee, by $1, 2, 3 a month ● Create a new stand alone fee, the Clean Environment Fee and it would fund the following: ○ Carbon Reduction Programs ○ Air Quality Programs ○ Climate Adaptation and Resilience ● It appears that these Fees are authorized by Ordinance, then included and funded in the Budget. 13 Where to go from here? ● Law needs to review / give us options. ● Council approves ordinances and the Budget. 14 Thank you! 15