Committee backs 2026 state and federal legislative guidelines, asks edits on utilities language

The Policy & Services Committee reviewed draft 2026 federal and state legislative guidelines and a separate 2026 utilities legislative policy framework and unanimously recommended both to the City Council Nov. 19 with committee edits.

Christine Pryor (assistant city clerk) introduced the two guideline sets and the staff recommendation that the committee forward them to council in January. Townsend Public Affairs consultant Carlin Shelby provided a legislative session overview that framed staff’s proposed approach: a high volume of bill introductions in 2025, significant budget deficits, and a slate of housing and energy bills likely to continue into 2026.

Committee requests and staff responses

Multiple council members asked for targeted edits before council consideration. Council Member Stone asked staff to keep language noting that Palo Alto’s police radios are not encrypted so the city can continue to tell that story to legislators; staff said the police department had suggested removing the line but would retain it if the committee wants. Members also asked staff to add tracking language on state efforts regarding e‑bikes and motorized micromobility (to preserve local pilot options) and to ensure a financial section bullet addresses both state and federal efforts to preempt local revenue tools.

The Utilities Advisory Commission recommended adding redlined language empowering staff to pursue legislation that mitigates the effects of Propositions 218 and 26 where rate design flexibility is needed to advance electrification. Utilities staff noted the proposal came from a UAC subcommittee vote and said they would incorporate appropriate guardrails to avoid conflict with public‑utility code.

Why it matters: the guidelines provide staff and the mayor with timely policy direction to respond to fast‑moving state and federal proposals without bringing each item to the full council first. The committee emphasized strategic, selective weighing‑in and asked staff to synchronize climate and equity language between the citywide and utilities guidelines.

Vote and next steps

A motion to recommend both sets of guidelines, amended to reflect committee feedback, passed unanimously. Staff will bring the redlined guideline packages to the City Council in January 2026.