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Director of Operation Services Daniel Smith recognized the work of members of the Energy and Environment Committee, residents, youth, businesses and the Chamber of Commerce, City Department Managers, Community Development staff members, and Jeff Caton, Director from ESA. He described the community engagement's profound effect on the CAP development, resulting in a collaborative structure tailored to their community, which resulted in a plan they could implement. Mr. Smith said they conducted 3 public workshops over a period of 6 months and it became apparent to them that businesses had different interest in the Clean Air Plan (CAP) than residents did. They hosted 4 productive workshops designed specifically for local businesses, developed a CAP website as www.pleasantongreenteam.orq which allowed people to track progress and provide feedback, and there is now increasing attendance to the Energy and Environment Committee meetings. He stated Partnerships for Success was used to build the program that has a track record of accomplishments, and discussed AB 32, the legislative mandate which requires the City by 2020 to reduce GHG's to 1990 levels or below, as well as the settlement agreement with the Attorney General's Office and Urban Habitat. A business case also exists for having a CAP because it implements cost- effective, sustainable practices and creates green jobs. He briefly discussed the many books written about how sustainability is a direct case for business cost reduction and environmental concerns to protect and restore natural resources which include reducing the need for fossil fuels and increasing renewable resources. He said the City has been implementing renewable energy and sustainability efforts which have saved the City money, with expected solar installations adding up to about $3.5 million over the next 20 years. Councilmember Thorne questioned and confirmed that there is a requirement for a cost benefit analysis for projects in the CAP. Regarding national security, Mr. Smith said the U.S. military is aggressively involved in a CAP now with a goal to reduce their carbon footprint by 50% by 2020 and he discussed the cost of fuel transport and sustainability efforts. He spoke about new evidence about the burning of fossil fuels, global warming, and GHG producing gases and reviewed alternative renewable energy sources which include solar, hydropower, biomass, and geothermal technology. Mr. Smith stated the following six best practices of the CAP were developed: 1) to have specific targets and performance measures to determine whether the plan was successful; 2) to promote citizen and stakeholder participation in the design and decisions for energy, efficiency and sustainability; 3) engage interested parties and share knowledge through sustainability circles and regional collaboration to learn what works and what does not work; 4) a dedicated sustainability office with appropriate funding; 5) coordinate sustainability with economic development; and 6) lead by example--increase sustainability initiatives by practicing them within local government operations and activities. He stated another big issue is population growth. By 2040, population is estimated to go from 7 billion to 8.5 to 9.5 billion, and there is no way we will be able to sustain this with water and energy. Water shortages are the biggest problem they will face in moving forward, and the CAP is one of the most important things done locally in the community to improve quality of life and sustainability. Experts predict that water resources will be hit the hardest and the problem has accelerated. The average water use per person has been 244 gallons over the last 5 years and they hope to achieve 195 gallons per person by 2020. By this time, this figure may be required to be 20% less. Mr. Smith provided an overview of State measures like the Pavley Bill, the low carbon fuel standard, the renewable portfolio, vehicle efficiency impacts, a fuel price impact, and he reviewed baseline level, business-as-usual levels and City credits which has led them to their CAP target numbers. Councilmember Sullivan asked how the City arrived at its business-as-usual based case of development from land use projections, as the housing cap will bring forward so many more units. Mr. Smith presented ABAG projections of population and employment and said numbers are based on the City's General Plan. Mr. Smith presented the following City strategies: Land use and population account for 25% of the total; Energy is 12%; Solid waste minimization accounts for 26%; Water and wastewater is less than 1% in terms of water efficiencies; Community engagement is significant at 37%, which is like the PG&E City Council Minutes Page 4 of 18 August 16,2011