Agenda Packet 6-17-19 Work Session

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Eugene CAP 2.0 – CRO Reduction Forecast Gaps Analysis Page 2 Recommended Additional Actions to Close the Fossil Fuel and GHG Gaps. Sector-based Actions (fossil fuel only): • Natural Gas in buildings actions (from Regulation of Natural Gas work session) o Action 1: Limit or prohibit new natural gas infrastructure. o Action 2: Require NWNG to incentivize customers’ reduced use of natural gas or customers’ purchase of emission offsets provided by NWNG’s Smart Energy Program. o Action 3: Regulate the purchase and installation of natural gas fueled appliances. o Action 4: Prohibit financial incentives for installing natural gas service. o Action 5: Prohibit financial incentives for purchasing natural gas appliances. o Action 6: Prohibit installation of natural gas service for new residential, commercial and/or industrial buildings. o Action 7: Require NWNG to fuel switch to biogas and renewable hydrogen. o Action 8: Increase franchise fee and dedicate franchise fee funds to implementing a program that provides incentives to switch from natural gas to renewable. o Action 9: Reduce the term of the franchise from 20 years to 10 years. o Action 10: Create a hybrid franchise fee structure: 1) fixed portion; and 2) variable fee based on carbon footprint of the natural gas delivered to the community. o Action 11: Prohibit the expansion of natural gas services unless NWNG can demonstrate plan to decarbonize its product. • Additional Building Actions (from Council Home Energy Score work session) o Action 12: Implement a Home Energy score program. • Transportation-Gasoline/Diesel Actions o Action 13: City adopts more aggressive rate of implementation of the Eugene Transportation System Plan goals, policies, and projects. Two scenarios have been modeled by LCOG and used for this analysis. Of note, as Council considers additional actions to fill CRO gaps, it is important to highlight the assumption that Eugene’s TSP would have to be fully implemented by 2035 to reach CRO targets and goals. Existing, Obama era fuel economy standards are included in TSP modeling. Considering the current approach on these standards by the Federal government we assume that what is already included the modeling is “aggressive”. o Action 14: Electrify the community’s on-road passenger vehicles and light trucks as rapidly as possible, potentially via the following approaches. ▪ City of Eugene works with partners (EWEB, ODOE, ODEQ, UO) to promote and enhance local financial incentives, and bulk EV purchases in a way that aligns community passenger vehicle EV adoption rates with CRO targets. ▪ A new vehicle registration fee or fuel distribution fee for City of Eugene on fossil fuel vehicles (gasoline and diesel) or fuels. Fee revenue could be used to provide additional local EV incentives. ▪ Prohibit the sale of fossil fuel powered passenger vehicles in Eugene after 2030. • Other Policy and non-fossil fuel actions o Action 15: Reduce refrigerant loss through possible approaches such as: new service fee for refrigerant re-charge of systems due to leakage. Fee is based on global warming potential of the refrigerant lost. New fee or tax on new refrigeration equipment that contains high impact refrigerants. Credit programs for recycling/decommissioning of older refrigeration equipment. o Action 16: Capture methane from organics before disposal and/or additional effort to increase the efficiency and quantity of landfill or wastewater biogas collection. o Action 17: Oregon Cap-and-Trade program is implemented. June 17, 2019, Work Session – Item 2