February 8, 2001 

The Honorable Gray Davis
Governor of California
State Capitol Building
Sacramento, CA 95814

Dear Governor Davis,

 I write to share with you our proposal to help make San José and Silicon Valley more energy self-sufficient. I announced our "San José Smart Energy Plan" last week at our annual San José State of the City Address, and this month the City Council will be considering our next steps to reach this goal. 

In recent months we all have become acutely aware of the current and projected problems facing California’s energy system. Although the chief responsibility for achieving statewide solutions lies with Sacramento, we have opportunities here in Silicon Valley to make substantial contributions to an overall solution for the benefit of both the state and the region. Silicon Valley can and should become more energy self-sufficient.

I believe that San José and our neighboring communities, working with our creative and entrepreneurial business community, can lead a collaborative effort to achieve long-lasting energy reliability with smart energy solutions that balance supply, conservation, and protection of neighborhoods. This is the summary of the approach we are taking:
  1. We have already called for a Silicon Valley energy summit next month where San José and neighboring communities will explore regional energy solutions together.
  2. Our goal for this energy summit is to develop a consensus among Silicon Valley cities, in collaboration with the County of Santa Clara, regarding the practical approaches we can take to increase energy self-sufficiency for the residents and businesses in our region. We will consider both the long-term and short-needs as we consider alternatives to increase supplies, reduce demand, and protect our neighborhoods and environment.
  3. We will work with our neighboring communities to identify regional criteria for appropriate locations for new large power plants in Silicon Valley.
  4. By coming to agreement on siting issues in general, we can expedite future applications for major power plants that will protect our economy and not harm our neighborhoods or environment. It is important that we reach a common understanding so that proposals for new large generation facilities do not adversely affect any residential community in our region, yet can meet the practical requirements for efficient production of energy.
  5. In addition, we will explore creative energy partnerships among our cities, with the state, and with the private sector that could help us ensure reliable supplies for our residents and our businesses.
  6. This approach could open up the possibility of innovative cooperative approaches for energy solutions that otherwise might not be practical for cities or businesses to undertake alone. These could include efforts such as new investment or participation in generation or distribution projects; joint energy purchases; and collaborative conservation measures and incentives. It is my hope that we can look at such creative possibilities on a regional basis, for their regional benefits, and to take advantage of the unique qualities of Silicon Valley’s entrepreneurial spirit.
  7. We must lead by example, too. We will join other California cities to reduce our energy demand through vigorous conservation efforts.
  8. The solution to self-reliance for energy must include more conservation as well as more generation and more transmission capacity. We will be encouraging residents and businesses in San José and Silicon Valley to do their best to cut their energy use by ten percent. In addition, the City of San José will reduce our own use by ten percent in our own municipal operations.
  9. We will expand our city’s model program for energy-efficient buildings to encourage long-term conservation results.
  10. Permanent energy savings can be achieved through the design of energy-efficient buildings. San José has already developed "green building" standards that include energy savings, and we will take steps to encourage our communities and the private sector to broaden similar efforts that will strengthen conservation in future construction.
  11. On the matter of increasing energy supplies, we will actively consider small, clean, and green power plants in San José that can be located in our industrial areas, not in residential neighborhoods.
Our goal will be to encourage small plants that could be built faster, relieve demand on the state power grid, and improve local reliability for our businesses and residents, both in San José and throughout our region. These could be done by major corporations, consortiums of local businesses, or proposed by the power industry. These plants would still be required to meet standards that protect environmental quality.
  1. We will set clear predictable standards for clean energy generation projects within our City’s authority, and we will streamline our City’s review and approval of appropriate power projects so they can be built quickly.
The California Energy Commission currently does not review proposed power projects that are under 50 megawatts. For these small plants, we should establish clear criteria within our local authority for land use, design, and environmental protection in order to provide predictable guidance for energy proposals and the City’s review and approval process. We will encourage our neighboring communities to consider similar steps to streamline their review and approval of clean energy generation facilities.
Silicon Valley has a long history of taking bold creative actions to solve complex problems such as traffic and housing. We have been successful to achieve solutions through regional consensus and with partnerships with the state and the private sector. We must do the same with energy. Our region, which has been the engine of prosperity so critically important to the state’s economy, must become more energy self-sufficient in order that we can continue our contribution to California’s success. 

On behalf of the residents and businesses in San José and Silicon Valley, I look forward to working together with you, members of the Legislature, and our neighboring communities as we endeavor to forge long-lasting and balanced solutions to California’s and our region’s for reliable energy. 

Sincerely, 

Ron Gonzales
Mayor 

cc: San José City Council
Santa Clara County Mayors
Santa Clara County Board of Supervisors
Silicon Valley Legislative Delegation