Title
Energy Access Target Adoption (Resolution 22273) - Citywide
Description
Request City Council approval to adopt an Energy Access target, which aims to increase Phoenix household participation in low-income energy assistance programs by 25 percent by 2030.
Report
Summary
Ensuring accessible and affordable energy is essential for improving the quality of life for Phoenix residents and fostering economic stability. Energy poverty refers to the inability to meet a household’s energy needs. Energy burden is a common metric that guides policy and regulations to tackle energy poverty; it is defined as the percentage of household income spent on energy bills (including gas and electricity). A household with high energy burden spends more than six percent of its pre-tax income on energy bills, while a household with severe energy burden spends more than ten percent of its pre-tax income on energy bills.
Based on the U.S. Department of Energy’s (DOE) Low-Income Energy Affordability Data (LEAD) tool, Phoenix has 584,114 households, of which 150,783 are below the 200 percent Federal Poverty Level (FPL) and are considered low-income households in regards to the target. The 200 percent FPL is commonly used as an eligibility threshold for energy assistance and weatherization programs. According to LEAD, 79,079 low-income households experience a high energy burden, and out of these, 42,289 low-income households experience a severe energy burden.
The City of Phoenix’s membership in the C40 Cities Climate Leadership Group and the City’s participation in the Global Covenant of Mayors (GCoM) include a commitment by the City to develop strategies and measures to facilitate energy access and/or reduce energy poverty in our community. To meet the City's GCoM commitments and maintain our leadership as a Carbon Disclosure Project (CDP) A-List City, the City must set a Council-approved Energy Access Plan (EAP) target by January 2025. Additionally, the City is required to develop a draft EAP for City Council consideration by January 2026 that will outline the recommended actions the City will take to meet or exceed the EAP targets. The GCoM Common Reporting Framework requires local governments to assess energy access and energy poverty by considering the conditions of secure, sustainable, and affordable energy. This assessment serves to guide the City in setting appropriate targets. To ensure the development of inclusive and effective targets, public engagement efforts began in 2024 and will continue through 2025 to gather input from Phoenix residents across diverse communities. After reviewing available data, and following discussions with community stakeholders, local utilities, and relevant City departments, staff recommends the following target: increase household participation in low-income energy assistance programs by 25 percent by 2030. The 2023 baseline for household participation in low-income energy assistance programs is 72,074 households. This baseline will be used to measure progress toward achieving the 25 percent increase target.
Energy assistance programs are currently available through utility companies and this goal will help promote knowledge of these programs. Additional resources may be available, such as weatherization programs and the state's Solar for All Program. By increasing participation, Phoenix aims to reduce the energy burden on vulnerable households and improve energy equity across the City.
Financial Impact
There is no financial impact to the City associated with this action.
Concurrence/Previous Council Action
This item was recommended for approval at the Transportation, Infrastructure, and Planning Subcommittee meeting on December 18, 2024 by vote of 3-0.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Alan Stephenson, the Office of Sustainability, and the Office of Environmental Programs.