City Efforts to Reduce Carbon Emissions

City Eorts to Reduce

Carbon Emissions

Audit Report

January 2020

City of Ausn

Oce of the City Auditor

The City of Ausn has made considerable eorts to reduce the community’s carbon emissions. Ausn

Energy, a City-owned electric ulity, is on track to meet or even exceed its goal of generang 65% renewable

energy by 2027. Ausn Energy is making progress to stop energy generaon from its power plants that emit

large amounts of carbon. The City is also working to help the community reduce transportaon emissions.

However, it is unclear if the City will reduce transportaon emissions enough to meet its goal for a carbon-

neutral community by 2050. The City can do more to promote electric vehicles to advance the community’s

progress toward carbon neutrality.

2 Oce of the City Auditor

Background

Objecve

Contents

How eecve are the City’s eorts to reduce community-wide carbon

emissions from energy generaon and transportaon?

Governments, businesses, non-prots, and individuals worldwide are

working to reduce carbon emissions. Carbon emissions contribute to

global warming and climate change, leading to higher temperatures and

more extreme weather events around the world. Carbon emissions come

from many dierent sources. Power plants, gas-powered cars, and trash in

landlls are some sources of carbon emissions.

In August 2019, City Council declared a climate emergency. Part of the

City of Ausn’s strategy to address the climate emergency is to reduce

carbon emissions. The City has two carbon-reducon goals. The rst goal

is for municipal operaons to be carbon neutral by 2020. The second goal

is for the Ausn community to be carbon neutral by 2050.

The City has made progress toward achieving carbon-neutral municipal

operaons by 2020. Municipal carbon emissions dropped signicantly in

2011 and 2012 because the City switched to 100% renewable energy

for City operaons. Addionally, the City is on track to meet its goals to

electrify some of the City’s vehicles by 2020.

The Ausn community is dened as Travis County for the purposes of reporng

community-wide emissions.

Cover: Wind Turbines, hps://pixabay.com/photos/windmill-farm-texas-

oklahoma-2773150/

Objecve and Background 2

What We Found 4

Appendix 9

Recommendaons and Management Response 10

Scope and Methodology 12

Many peer cies are working toward

a 2050 carbon-neutral community.

See the appendix for a comparison

of peer cies’ community-wide

carbon reducon goals.

Exhibit 1: The City of Ausn’s municipal emissions decreased aer 2010

due to switching to renewable energy

SOURCE: Oce of the City Auditor’s analysis of Oce of Sustainability data, October 2019

50,000

100,000

150,000

200,000

2010 2012 2018

Other

Vehicle Fuel Use

Electricity

Metric Tons CO2e*

*CO2e signies carbon dioxide equivalent, which is used to compare emissions from various

greenhouse gases based on their global warming potenal.

3 Oce of the City Auditor

The Oce of Sustainability is exploring opons to buy carbon osets to

account for the remaining municipal emissions to meet the 2020 goal.

Carbon osets are purchased to cancel out an organizaon’s emissions

instead of directly reducing them. An organizaon can contribute money

to eorts that reduce carbon emissions elsewhere and then apply this

reducon to its own emissions. The Oce of Sustainability esmates the

carbon osets needed to cover the remaining municipal carbon emissions

will cost between $200,000 and $500,000 this year.

However, municipal carbon emissions are less than one percent of the

community’s emissions. The more challenging goal is to be a carbon-

neutral community by 2050.

The Ausn Community Climate Plan directs the City’s eorts to become

a carbon-neutral community by 2050. There are also other City plans that

include eorts to reduce carbon emissions from parcular areas, such as

energy generaon and transportaon. The Ausn Community Climate Plan

helps to align these other City plans in an overall eort to become carbon

neutral.

The Oce of Sustainability leads eorts to create and update the Ausn

Community Climate Plan. The Oce of Sustainability also reports data

and conducts analyses that provide informaon for long-term planning.

The Oce of Sustainability reported that the community’s esmated

carbon emissions were 12,500,000 metric tons in 2017. Energy and

transportaon emissions made up 90% of that total.

Exhibit 2: Ausn’s community emissions have decreased over me**

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

2010 2011 2012 2013 2014 2015 2016 2017

Waste

Industrial Process

Transportation

Energy

SOURCE: Oce of Sustainability, October 2019

Metric Tons CO2e*

*CO2e signies carbon dioxide equivalent, which is used to compare emissions from various

greenhouse gases based on their global warming potenal.

**Community-wide emissions data for 2018 was not nalized at the me of this report.

The City of Ausn has made considerable eorts to reduce the

community’s carbon emissions. Ausn Energy, a City-owned electric ulity,

is on track to meet or even exceed its goal of generang 65% renewable

energy by 2027. Ausn Energy is making progress to stop energy

generaon from its power plants that emit large amounts of carbon.

The City is also working to help the community reduce transportaon

emissions. However, it is unclear if the City will reduce transportaon

emissions enough to meet its goal for a carbon-neutral community by

2050. The City can do more to promote electric vehicles to advance the

community’s progress toward carbon neutrality.

Ausn Energy is reducing

carbon emissions from

energy generaon on

track with the goal to

be a carbon-neutral

community in 2050.

Finding 1

Ausn Energy generates energy from several dierent sources - coal,

natural gas, nuclear, and renewable. Coal and natural gas produce large

amounts of carbon emissions. Nuclear energy does not produce carbon

emissions, but it is not renewable. Renewable sources, primarily wind and

solar, do not produce carbon emissions.

The amount of energy generated

from each source at a certain me varies due to the need for energy,

weather condions, and other factors.

Ausn Energy must increase renewable energy generaon and reduce

generaon from its sources that emit large amounts of carbon to stay on

track for the 2050 carbon neutrality goal.

Ausn Energy is increasing its percentage of renewable energy generaon

and is on track to meet or even exceed its 2027 renewable energy goal.

The Ausn Energy Resource, Generaon, and Climate Protecon Plan

to 2027 (AE 2027 plan) directs the City’s eorts to increase renewable

energy and close power plants that emit large amounts of carbon.

The AE 2027 plan sets a goal for Ausn Energy to have 65% renewable

energy generaon by 2027. On average, Ausn Energy’s energy generaon

was 37% renewable from October 2018 to July 2019.

Ausn Energy’s renewable energy also includes a small amount of biomass.

Ausn Energy’s 37% renewable generaon is a percentage of its total energy generaon.

During this same period, Ausn Energy’s renewable generaon as a percentage of its

customers’ energy needs was 40%.

What We Found

Summary

Ausn Energy’s energy generaon

was 61% carbon-free overall (37%

renewable and 24% nuclear) from

October 2018 to July 2019.

5 Oce of the City Auditor

Ausn Energy enters into agreements to buy renewable power from

companies that own wind or solar farms. In August 2019, City Council

approved the request to increase the amount of wind power Ausn Energy

buys. Ausn Energy projects that the addion of this wind power will raise

its renewable percentage to 61% by 2021.

Based on these projecons, Ausn Energy will be close to reaching its

renewable energy goal six years ahead of the target date.

Ausn Energy is making progress to stop generaon from two power

plants that produce large amounts of carbon emissions.

The AE 2027 plan set goals for Ausn Energy to stop producon from

two of its energy sources that emit large amounts of carbon. These energy

sources are the Decker Creek Power Staon and the Fayee Power

Project.

The Decker Creek Power Staon is a natural gas power staon with two

steam units, owned by Ausn Energy. The AE 2027 plan sets targets to

close one steam unit by the end of 2020 and to close the other steam unit

by the end of 2021. Ausn Energy has a dened plan and meline to make

progress toward meeng these goals. City sta who currently operate the

Decker Creek Power Staon will no longer have posions when both units

are rered. Ausn Energy is providing training to these employees to help

them prepare for new employment.

The Fayee Power Project is a coal plant with three units. Ausn Energy

co-owns two of the units with the Lower Colorado River Authority (LCRA),

a public ulity created by the Texas State Legislature. LCRA owns the third

unit. In August 2019, City Council approved Ausn Energy’s request for

legal counsel to assist negoaons with LCRA to stop producon from

Ausn Energy’s share of the Fayee Power Project.

Ausn Energy’s 2021 projecon that renewable generaon will be 61% is reported as a

percentage of its projected customers’ energy needs.

Ausn Energy projects energy

generaon will be 84% carbon-free

overall (61% renewable and 23%

nuclear) by 2021.

Exhibit 3: Ausn Energy’s generaon was 37% renewable and 61%

carbon-free* from October 2018 to July 2019

Natural

Gas

12%

Renewable

37%

Coal

25%

Nuclear

24%

Other

SOURCE: Oce of the City Auditor analysis of Ausn Energy data, October 2019

*Renewable generaon is added to nuclear generaon to calculate the carbon-free percentage.

Ausn Energy sta say they are working to stop producon from their

share of the plant as opposed to selling their share to another enty.

Ausn Energy has included the impact of stopping producon from both of

these energy sources in their budgetary and energy generaon forecasts.

The City of Ausn has a high percentage of renewable generaon

compared to peer cies, parcularly peer cies in Texas.

Ausn Energy is an electric ulity owned by the City of Ausn. As a result,

the City of Ausn has more control over its energy generaon resources

than cies who do not own their electric ulity. Houston and Dallas do

not own their electric ulity. These cies do not have informaon about

how much renewable energy supplies their communies. Ausn Energy’s

renewable generaon is also 15 percentage points higher than the City of

San Antonio, which does own its electric ulity.

Exhibit 4: Ausn’s percentage of renewable energy compared to peer

cies that own their electric ulity

SOURCE: Oce of the City Auditor peer city analysis, October 2019

City Community-wide energy goal Renewable energy*

Seale Maintain a carbon-neutral ulity 93% in 2017

San Jose 100% renewable by 2050 45%

Ausn 65% renewable by 2027 37%

Los Angeles 100% renewable by 2045 30% in 2017

San Antonio 40% renewable by 2040 22%

Columbus** 10% renewable by 2020 City does not have

this informaon

**Columbus’ municipally-owned ulity is small and only serves about 14,000 customers.

*Figures as of 2019 unless otherwise stated.

The City has eorts

in place to reduce

transportaon emissions.

However, it is unclear

if the City will reduce

transportaon emissions

to the extent needed to

meet the 2050 carbon-

neutral goal.

Finding 2

People need to signicantly decrease driving alone in gas-powered cars

for the City to meet its goal to be carbon neutral by 2050.

Ausn is a city that relies primarily on gas-powered cars to move around.

About 75% of Ausn residents commute to work by driving alone.

A primary way to decrease transportaon emissions is for people to drive

alone in gas-powered cars less oen. This also has the potenal to support

other crical City goals, such as reducing congeson and car accidents.

The Ausn Strategic Mobility Plan set a goal in 2019 to reduce the number

of people driving alone to 50% by 2039. This eort will require changes

to Ausn’s transportaon infrastructure. The Ausn Transportaon

Department (ATD) has strategies to invest in addional infrastructure such

as sidewalks, bike lanes, and transit. These infrastructure changes are part

of the strategies in the Ausn Strategic Mobility Plan to work toward the

goal of people driving less. Infrastructure changes are oen long-term

projects. These changes require signicant me, money, and coordinaon

with other enes.

The Ausn Transportaon Department also has programs to encourage

people to change their habits. ATD runs an incenve program to

encourage City employees to commute in ways other than driving alone.

In addion, ATD works with an organizaon called Movability. Movability

is a transportaon management associaon that helps employers in Ausn

develop commute plans for their employees to drive alone less. ATD also

has a public outreach program, Smart Trips, to help people learn about

transportaon opons other than driving alone.

Despite these eorts, the City of Ausn does not have direct control over

whether someone decides to drive alone in a gas-powered car. This lack of

control makes it dicult for the City to know if it will reduce transportaon

emissions enough to achieve the 2050 carbon-neutral goal.

In addion to driving less, people need to adopt electric vehicles in

greater numbers for the City to meet its goal to be carbon neutral by

2050. The City can do more to promote electric vehicle adopon.

Electric vehicles are another way to reduce transportaon emissions. It is

important to note that electric vehicles do not reduce congeson or car

accidents. Electric vehicles cannot replace eorts to encourage people to

drive less. However, electric vehicles can contribute to carbon reducon

without extensive infrastructure changes or signicant modicaons to

people’s transportaon habits.

The City of Ausn is working to add more electric vehicles where possible

to its municipal eet. In 2016, City Council passed a goal for the City

to have 330 electric vehicles in its eet by 2020. The City is on track to

meet that goal as well as install the charging staons to support those

vehicles. However, the municipal eet is less than one percent of the total

community carbon emissions.

The Oce of Sustainability projects

that transportaon will contribute to

more than half of the community’s

carbon emissions by 2030.

The Internaonal Council on Clean

Transportaon highlights Ausn

as a regional leader in community

adopon of electric vehicles.

Almost a quarter of electric vehicles

registered in Texas in 2018 were

registered in Travis and Williamson

counes.

8 Oce of the City Auditor

The community needs to adopt electric vehicles in greater numbers to

make signicant progress toward the 2050 carbon neutrality goal.

The City also has eorts in place to encourage electric vehicle adopon in

the community. Ausn Energy is currently responsible for most of these

eorts. Ausn Energy has public charging staons throughout the city.

Ausn Energy oers rebates to single-family and mul-family residenal

properes for electric vehicle charging staons. Ausn Energy created

an online electric vehicle buying guide, which includes informaon such

as charging staon locaons and available incenves for buying electric

vehicles. Ausn Energy also promotes electric vehicle adopon through

social media and community events.

However, other cies have addional iniaves to encourage community

electric vehicle adopon that the City of Ausn does not. The City of

Ausn may be able to implement similar eorts to increase community

electric vehicle adopon. The City of Columbus oers rebates for certain

companies’ employees to purchase electric vehicles. The cies of San

Jose, Atlanta, and Boston have electric vehicle-ready ordinances. These

ordinances require new parking construcon to have a certain percentage

of charging staons or at least electric connecvity for future charging

staons.

The City of Ausn does not have a comprehensive plan to increase

community electric vehicle adopon. However, the City has already

idened a need for this plan.

In May 2019, City Council passed

a resoluon direcng the City Manager to include an analysis of

transportaon electricaon and acon planning in the next update to the

Ausn Community Climate Plan. The Oce of Sustainability is working on

incorporang strategies to promote electric vehicles through the larger

eort to update the Ausn Community Climate Plan in 2020.

The Internaonal Council on

Clean Transportaon found that

consumer incenves are important

to increasing community electric

vehicle adopon.

Appendix

City Community-wide carbon-neutral goal Community-wide energy goal Municipal

owned

ulity?

Renewable Carbon-free*

Seale 100% carbon-neutral community by 2050 Maintain status as a carbon-neutral ulity Ye s 93% in 2017 97% in 2017

San Jose Reduce emissions 80% below 1990 levels

by 2050

100% carbon-free by 2021

100% renewable by 2050

Ye s 45% 80%

Ausn 100% carbon-neutral community by 2050 65% renewable by 2027 Ye s 37% 60%

Los Angeles 100% carbon-neutral community by 2050 100% renewable by 2045 Ye s 30% in 2017 40% in 2017

Denver Reduce emissions 80% below 2005 levels

by 2050

100% renewable by 2030 No 28% 28%

San Antonio 100% carbon-neutral community by 2050 40% renewable by 2040 Ye s 22% 36%

Boston 100% carbon-neutral community by 2050 80% carbon-free by 2050 (State law) No 19% 19% (nuclear is

phasing out)

Atlanta Reduce emissions by 20 percent below

2009 levels by 2020 and 40 percent by

2030

100% carbon-free by 2035 No 6% in 2018 26% in 2018

New York City Reduce emissions 80% below 2005 levels

by 2050

None No 5% in 2017 23% in 2017

Columbus Reduce emissions 20% below 2015 levels

by 2020

10% renewable by 2020 Yes** City does not have

this informaon

City does not have

this informaon

Houston None None No City does not have

this informaon

City does not have

this informaon

Dallas None None No City does not have

this informaon

City does not have

this informaon

City Eorts to Reduce Carbon Emissions 9

Oce of the City Auditor

Community-wide carbon reducon and energy goals of reviewed peer cies

Renewable and carbon-free energy percentages as of 2019 unless otherwise stated

SOURCE: Oce of the City Auditor peer city analysis, October 2019

*Nuclear energy is carbon-free but not renewable. This column adds the city’s nuclear energy to its renewable energy.

**Columbus’ municipally owned ulity is small and only serves about 14,000 customers.

10 Oce of the City Auditor

Recommendaons and Management Response

Update to Community Climate Plan

The Oce of Sustainability is managing the Community Climate Plan revision process and will provide

regular reports to the Climate and Environment Leadership Team starng in 2020. This will ensure that

City leadership has a complete picture of overarching climate change goals and City-wide mobilizaon

eorts. We will be supported by sta from partnering departments and by community members who

volunteer to parcipate in the process.

The overarching direcon for the plan revision is being led by a Steering Commiee composed of 20

Ausn residents who will volunteer to parcipate in monthly meengs over the course of six months.

Each emissions sector has a dedicated Advisory Group tasked with generang strategies and reducon

targets for emissions from that sector. Each Group will have 3-5 City sta and 10-15 community

stakeholders. Intenonal inclusion of diverse perspecves has been a focus for all groups.

The Steering Commiee will establish a charter and planning assignment for each Advisory Group

to complete. The Steering Commiee will also oversee the enre revision process, ensuring that the

combined work of the process will achieve the necessary climate and equity outcomes over the next

5-10 years.

An Advisory Group has recently been formed which will have a specic focus on Electricaon of

the Transportaon System, partly as a response to Council Resoluon 20190509-020 which directed

sta to “include an analysis of transportaon and electricaon and acon planning in the next

update to the City of Ausn Community Climate Plan.” Ausn Energy is leading this Advisory Group.

Organizaons represented include ATD, City of Ausn Fleet Services, CapMetro, Pecan Street,

TXETRA, CAPCOG, Travis County, AISD, and the Energy Foundaon.

Specic Focus on Electricaon of the Transportaon System

Building on the goals of the Ausn Strategic Mobility Plan for a 50 percent mode-split, the updated

Community Climate Plan will focus on the transion to zero-emissions technology with the creaon

of a comprehensive Electric Vehicle plan. In addion to electric vehicle ownership, sta will analyze

opons for shared mobility, eets and public transit, logiscs, and micro-mobility. This eort will

include an analysis of scenarios for dierent EV adopon trends to determine interim greenhouse gas

emissions targets. The transportaon electricaon plan will consider opons for:

• establishing an electric-ready ordinance

• engaging the community to provide informaon on benets and programs

• encouraging large employers to provide workplace employee charging and to electrify their eets

Proposed Implementaon Plan:

Management Response:

Agree

To further the City’s progress to be a carbon-neutral community, the Oce of Sustainability should

ensure that innovave strategies to promote electric vehicles are considered as part of the process

to update the Ausn Community Climate Plan. The Oce of Sustainability should ensure that

responsibility for implemenng these strategies is assigned to the appropriate enty. Potenal

strategies include:

• oering rebates for electric vehicles;

• establishing an electric vehicle-ready ordinance; and

• encouraging large employers to electrify their eets.

11 Oce of the City Auditor

Proposed Implementaon Date: An interim update to Mayor and Council will be provided by February

1, 2020 including lessons learned from EV grid integraon eorts, demand response programs, and EV

rate structures.

A completed Ausn Community Climate Plan including specic updates on Electricaon of the

Transportaon System will be provided by October 1, 2020.

• oering rebates for electric vehicles

• privately managed EV charging staons, parking, host issues, and access

• increasing access to EV charging for residents of mul-family housing, including on-site and o-site

charging opons (such as Level 2 workplace and DC-Fast charging)

• dealer engagement and customer experience

• shared, Electric, Autonomous Mobility as a service

• micro e-mobility

• nes for non-EV vehicles parking in public EV-only parking spaces

As part of the Community Climate Plan revision process, the respecve roles for the City of Ausn

and other community stakeholders (e.g. Capital Metro, CAPCOG, CAMPO, school districts, and others)

will be idened. In addion, potenal barriers where the City does not exert direct control, as well as

opportunies for partnerships with other governments and agencies will be idened. Stakeholders

will include City departments such as Ausn Energy, Planning and Zoning, Development Services,

and the Ausn Transportaon Department, as well as external groups such as the Public Ulies

Commission, TXETRA, and others.

Exisng Consideraons

To understand the eorts and context of this recommendaon a few key consideraons should be

incorporated into planning that leverage exisng programs and strategic plans.

• Currently Ausn Energy manages over 850 publicly accessible charging staons powered by Texas

wind energy.

• Approximately 85% of all EV charging occurs at home driven by customer preference and

convenience.

• AE’s renewable energy mix by default connues to get more “green” and the current Resource Plan

includes 65% renewable energy by 2027 (and over 85% carbon-free due to nuclear generaon).

• Partnerships with dealers is key as they drive the crical customer experience at the point of sale.

There is currently a dealership engagement program underway led by Ausn Energy in partnership

with Bloomberg Philanthropies American Cies Climate Challenge and local auto dealerships.

• Ausn Energy currently has a residenal pilot to encourage “o peak” charging, EV 360.

• Ausn Energy has a residenal rebate program for home charging staons with an increase

rebate amount for Wi-Fi enabled systems to lay the groundwork for managed charging pilots and

programs.

Limitaons and Concerns

• Electric vehicles and forms of transportaon represent a rapidly evolving marketplace. Not all

vehicle classes currently have alternave electric vehicles available as a replacement. Therefore,

widespread adopon of electric vehicles is dependent on manufacturing, regional market

availability, and emerging technology.

• Electric vehicles, when paired with renewable energy sources, represent signicant opportunies to

lower the carbon footprint associated with transportaon. However, this approach alone does not

lower congeson of vehicles that are stuck in trac.

• Many of the approaches under consideraon are dependent on consumer choices and behavior.

The City of Ausn can provide programs and awareness, but ulmately key decisions of adopon

will be up to the preference of private individuals and organizaons.

12 Oce of the City Auditor

Audit Standards

Scope

Methodology

To complete this audit, we performed the following steps:

• interviewed key personnel in the Oce of Sustainability, Ausn

Energy, Ausn Transportaon Department, and Watershed Protecon

Department;

• reviewed City plans relevant to the City’s carbon reducon eorts;

• validated data provided by Ausn Energy and Oce of Sustainability

sta;

• observed a meeng of the Electric Ulity Commission’s working group

created to update Ausn Energy’s resource plan;

• reviewed customer surveys for Ausn Energy’s home electric vehicle

charger rebate program;

• reviewed documents related to Fleet Mobility Services’ electric vehicle

purchases and interviewed relevant sta;

• reviewed informaon on City outreach eorts to encourage fewer

drive-alone trips;

• researched peer cies for informaon on eorts related to renewable

energy and electric vehicles;

• evaluated internal controls related to the City’s carbon reducon

eorts; and

• evaluated the risk of fraud, waste, and abuse with regard to carbon

reducon eorts.

The audit scope included City eorts to reduce carbon emissions from

2016 onward.

We conducted this performance audit in accordance with Generally

Accepted Government Auding Standards. Those standards require that

we plan and perform the audit to obtain sucient, appropriate evidence

to provide a reasonable basis for our ndings and conclusions based on

our audit objecves. We believe that the evidence obtained provides

a reasonable basis for our ndings and conclusions based on our audit

objecves.

The Oce of the City Auditor was created by the Ausn City

Charter as an independent oce reporng to City Council to help

establish accountability and improve City services. We conduct

performance audits to review aspects of a City service or program

and provide recommendaons for improvement.

City Auditor

Corrie Stokes

Deputy City Auditor

Jason Hadavi

Alternate formats available upon request

Copies of our audit reports are available at

http://www.austintexas.gov/page/audit-reports

Audit Team

Kae Houston, Audit Manager

Kelsey Thompson, Auditor-in-Charge

Andrew Scoggin

Oce of the City Auditor

phone: (512) 974-2805

email: AustinAudit[email protected]

website: http://www.austintexas.gov/auditor

AustinAuditor

@AustinAuditor