Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
OCTOBER 16, 2025
Subject
SUBJECT: 2025 ENERGY MASTER PLAN
Action
ACTION: ADOPT METRO’S ENERGY MASTER PLAN
Heading
RECOMMENDATION
Title
ADOPT the Energy Master Plan recommendations (Attachment A).
Issue
ISSUE
Metro’s energy supply is fundamental to sustaining operations, advancing clean energy and environmental goals, and ensuring system resiliency. Yet the external energy landscape is marked by increasing supply constraints, rising costs, and heightened vulnerability to climate-driven disruptions. At the same time, Metro’s expanding portfolio of energy assets-such as electric vehicle charging infrastructure, solar panels, and energy storage systems-requires not only capital investment, but also ongoing integration through software platforms, cybersecurity protections, and a skilled workforce capable of managing and optimizing these technologies.
In this context, Metro’s 2025 Energy Master Plan (EMP) provides the agency with a timely opportunity to proactively design a comprehensive energy ecosystem plan. The EMP addresses projected energy needs, identifies cost-effective strategies for clean energy generation, and recommends targeted investments in energy management technologies and resiliency projects that will enable Metro to meet future demand while controlling costs and strengthening system reliability.
Background
BACKGROUND
The Metro 2025 EMP represents the agency’s first formal energy master planning update since the Energy Conservation and Management Plan (ECMP) was developed and adopted in 2011. Since that time, Metro has implemented numerous energy-related initiatives, established and made progress toward ambitious energy and climate goals, and deployed on-site renewable energy and electric vehicle charging systems across its operations.
Changing external conditions now requires a more proactive and integrated approach. Macroeconomic realities-including energy supply constraints driven by electrification demand, insufficient investment in grid infrastructure, rising energy prices, and energy technology supply chain challenges-combine with climate-driven stressors such as extreme heat, wildfire, and other severe weather events to heighten the need for comprehensive energy planning, cost management, and resiliency.
Metro’s growing need for resiliency was reinforced by the 2022 climate risk screening of assets, staff, and customers, followed by a 2023 evaluation of Metro’s adaptation, continuity of operations, and resiliency measures. These findings informed the 2025 Climate Action and Adaptation Plan (CAAP) update. Key energy-related risks include increased grid outages and mechanical and electrical system disruptions associated with higher ambient temperatures, flooding, and storms. Metro has integrated these risks into the All Hazards Mitigation Plan (AHMP), which emphasizes making climate and emergency management agency-wide considerations. Consistent with the Agency-wide Continuity of Operations Plan (COOP), which identified 19 critical business units requiring rapid resumption following disruption, the EMP provides energy-focused strategies to enhance system reliability.
In parallel, Metro’s Vision 2028 and transit demand management goals further underscore the need for a proactive, dynamic energy planning framework that can sustain operational reliability, build resiliency, and mitigate potential supply or delivery constraints as ridership grows.
Metro’s strategic energy and climate commitments also shape the EMP. In 2020, the Board adopted the Moving Beyond Sustainability Plan (MBS), the agency’s 10-year sustainability plan that establishes transformative goals to reduce environmental impacts, address the climate crisis, and advance equity and resiliency across Los Angeles (LA) County. Within the MBS, Metro committed to two key energy management targets:
1. Reduce facility energy consumption by 17% by 2030, relative to the Business-as-Usual (BAU) scenario.
2. Increase on-site renewable energy generation to 7.5 MW.
While the MBS outlines strategies toward these targets, the EMP provides the holistic, integrated analysis of current and projected energy usage needed to guide achievement. Accordingly, all energy demand and renewable energy strategies in the EMP are fully aligned with and reflected in the MBS.
Metro’s Board adopted CAAP in 2019, which set two agency-wide greenhouse gas (GHG) reduction targets:
1. Reduce total GHG emissions 79% by 2030 (from 2017 baseline).
2. Achieve net-zero GHG emissions by 2050.
These CAAP targets were subsequently incorporated into the MBS in 2020, reinforcing Metro’s commitment to deep decarbonization. The EMP complements these efforts by advancing strategies for energy cost management, expanded procurement of carbon-free electricity, and associated energy resiliency investments that will enable Metro to meet its 2030 and 2050 GHG reduction goals.
Discussion
DISCUSSION
The EMP represents a critical, timely effort to establish a comprehensive and dynamic roadmap for Metro’s future energy needs. Developed to address projected increases in energy demand, costs, and resiliency challenges, the EMP provides an integrated framework to guide cost-effective investments in clean power generation, energy management technologies, and resiliency measures across Metro’s system.
The EMP is built on a rigorous technical foundation. It incorporates detailed energy forecasts using an Excel-based modeling tool that integrates building- and meter-level consumption data, historic and projected energy prices, zero-emission bus (ZEB) rollout schedules, traction power demands, fleet and non-revenue electric vehicle (EV) charging, on-site solar photovoltaic (PV) generation, and current and future facility energy needs based on approved capital and operational plans. Core planning and policy documents-including the MBS, Vision 2028, the Long-Range Transportation Plan (LRTP), the Equity Toolkit, and the CAAP-were aligned with operational data to ensure consistency with Metro’s long-term goals. Recommendations were further informed by research into energy management best practices and validated through multiple working sessions with Metro staff and community-based organizations (CBOs).
Findings
Key findings indicate that Metro’s energy profile will undergo significant transformation between 2025 and 2050. Electricity demand, primarily driven by electrification of the bus fleet and system expansion, is forecast to increase from 334 GWh in 2024 to over 1,000 GWh by 2050, representing a 200% increase. Current annual energy costs of $95 million are also projected to rise substantially over this period. When accounting for utility rate escalation and increased energy consumption, total costs in 2050 could reach between $520 million under a low scenario (3% average annual rate increase) and $1.77 billion under a higher scenario (8% average annual rate increase).
The table below presents projected total energy costs for 2050 under different utility rate escalation scenarios. Year 2050 energy usage is assumed to remain constant across scenarios, while utility rates change 3 percent, 6 percent, and 8 percent per scenario.
The table also identifies the relative contribution of energy consumption growth versus utility rate escalation and inflation to the total cost increase, illustrating the impact of future rate increases on Metro’s energy expenditures.
Resiliency pressures will also intensify as electrification expands into areas with known grid supply constraints, particularly within several bus divisions and park-and-ride facilities. Current reliance on renewable diesel backup generators and uninterruptible power supply (UPS) systems provides only limited coverage, and existing solar PV systems are not paired with storage, preventing them from supplying power during outages.
While Metro has achieved 46 percent renewable electricity toward its CAAP goal of 100 percent by 2035, existing solar PV installations (currently 2.6 MW toward a 7.5 MW goal) face operational challenges related to aging equipment, weather impacts, and reactive maintenance practices. Without proactive operations and maintenance strategies, reliance on costlier utility power will increase. Similarly, energy savings and automation technologies remain under-deployed across Metro’s facilities, limiting potential efficiency gains. Workforce training programs are also challenged by variability and lack of standardization in control systems, underscoring the need for expanded partnerships and skills development to support the transition to electrification and advanced energy systems.
To address these findings, the EMP identifies four primary areas of recommended action: (1) Energy Planning, (2) Energy Supply, (3) Energy Technology Deployment and Workforce Development, and (4) Stakeholder Engagement. Specific measures include establishing a centralized energy planning steering committee, standardizing operating procedures for resiliency projects, expanding and modernizing solar PV with integrated storage, upgrading building automation systems, piloting energy storage at traction power substations and bus divisions, and strengthening utility, workforce, and community partnerships. These actions are phased and structured to support incremental progress, inform future investment decisions, and provide resiliency and cost-mitigation benefits.
The EMP is intentionally designed as a dynamic, updateable resource that will evolve alongside Metro’s operational and capital planning. Over the next 12-18 months, priority focus areas include ZEB division resiliency planning, traction power substation energy storage pilots, and the development of a comprehensive implementation roadmap. These near-term actions will provide critical lessons learned, establish cost-benefit frameworks, and build institutional capacity to support broader deployment in FY27 and beyond.
Through these measures, the EMP positions Metro to proactively manage its most significant energy challenges, mitigate cost escalation, strengthen operational resiliency, and advance its commitment to a clean, equitable, and sustainable transportation system.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The recommended Board action to approve and adopt Metro’s EMP will have a direct and positive impact on safety, service quality, system reliability, performance and overall customer satisfaction through increased system reliability, energy resiliency and energy cost mitigations. The EMP supports Metro’s continuity of operations and reduces system vulnerability and energy independence as energy needs grow, and energy sources are homogenized.
Financial_Impact
FINANCIAL IMPACT
Impact to Budget
Adoption of the EMP will establish a framework and near-term action steps for a proactive, integrated approach to energy cost management and resiliency planning. At this time, there is no direct budget impact associated with Board adoption of the EMP. Initial funding for implementation will be drawn from existing approved budgets under the Metro Office of Sustainability, including Projects 450001: Energy Conservation Initiative, 450003: Sustainability Environment, 290009: EV Parking Equipment Program, 205697: Distributed Energy Resources, 207187: Building Automation Integration, Division 9, 208615: Non-Revenue Fleet EV Charging Program; 210805: Energy Resiliency, C Line and Division 18.
Implementation of EMP strategies may, over time, require new projects and associated capital life-of-project budgets to achieve long-term energy savings and resiliency benefits. Any such requests will be developed in coordination with relevant departments and returned to the Board for approval.
The EMP is a critical cost-management tool. With Metro’s annual energy expenditures projected to rise sharply over the next 25 years, the EMP provides early visibility into future energy demand and costs, enabling proactive planning and targeted mitigation strategies. By prioritizing integrated, site-level investments-rather than piecemeal, technology-by-technology deployments, the EMP will optimize interactive benefits, reduce shared costs (e.g., design, trenching, wiring), and deliver scalable, cost-effective solutions across the system.
While not required, Metro will apply a standardized cost-effectiveness analysis to all future EMP-related projects to ensure investments deliver strong value. Existing analyses already identify Solar PV, energy storage, and energy efficiency investments as positive based on Net Present Value (NPV) and Return on Investment (ROI). More detailed, site-specific cost-effectiveness analysis will be developed beginning in FY26 to inform future budget requests.
Equity_Platform
EQUITY PLATFORM
EMP recommendations include the development of additional on-site clean energy generation, energy management and resiliency technologies at critical sites to provide local health benefits, and opportunities for continued workforce development partnerships. These recommendations will support long-term operational sustainability of the growing transit system, positively impacting Equity Focus Communities (EFCs), customers, and broader transit system users across LA County.
As part of the development of the EMP, the team engaged the Office of Equity and Race to develop a plan for community feedback to better understand the implications of the EMP strategies and recommendations. The team conducted a stakeholder outreach effort during the development of the plan with the goal of soliciting early perspectives from organizations across Metro’s service area as to needs of - and insights from - local communities. This was primarily accomplished via interviewing five CBOs that had not previously engaged in other Metro sustainability or climate-related efforts that included Brotherhood Crusade, Car-Lite Long Beach, Day One, Los Angeles Neighborhood Initiative (LANI), and YMCA of Whittier.
This engagement opportunity was posted through the CBO Database and aligned with Metro’s CBO Partnering Strategy. Several key recommendations were incorporated from this CBO outreach into the EMP including ongoing CBO engagement, exploring workforce development partnerships, and ensuring that energy equity indicators and benefits are communicated publicly via Metro’s website and/or data dashboards.
To achieve equity objectives, the EMP recommendations include the integration of equity assessments in early project and program planning phases using the data and resources from the forthcoming Equity Toolkit, Community Demographic Profiles, and Metro’s Cost Benefit Analysis (CBA) for larger capital projects. The data and insights collected from these assessments are intended to support the ongoing evaluation and continual improvement of energy equity as part of Metro’s Equity Platform.
Next steps in the implementation of equity objectives as part of energy planning will include an equity assessment for the Division-18 distributed energy resource feasibility plan. Community engagement will also be part of Metro’s ongoing conversation with utilities and regional energy partners including the LA100 Plan advisory group. The LA100 Plan documents are updated periodically and incorporate community input through robust outreach and engagement.
Vehicle_Miles_Travelled_Outcome
VEHICLE MILES TRAVELED OUTCOME
Vehicle Miles Traveled (VMT) and VMT per capita in LA County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit. Metro’s Board-adopted VMT Reduction Targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
As part of these ongoing efforts, this item is expected to contribute to further reductions in VMT. While this item does not directly encourage transit, sharing a ride, or using active transportation, it is a vital part of Metro operations, as it supports operational resiliency, environmental and sustainability goals and cost-effective energy management strategies. Because the Metro Board has adopted an agency-wide VMT Reduction Target, and this item supports the overall function of the agency, this item is consistent with the goals of reducing VMT.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Implementation of the EMP provides Metro with a strategic, actionable framework to evaluate and develop energy management and resiliency actions that increase system reliability, reduce long-term energy costs, and expand on-site clean energy generation. The EMP also establishes a transparent, data-driven tool for evaluating projects against strategic goals, ensuring that Metro’s capital investment decisions are aligned with organizational values and deliver measurable benefits to riders, communities, and the region.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board could choose not to approve the EMP, direct staff to revise the recommendations prior to implementation, or decline implementation altogether. However, not approving the EMP would significantly limit staff’s ability to deliver proactive, data-driven strategies to address Metro’s projected energy demand, escalating costs, and resiliency needs. Without the EMP, Metro would face increased fiscal exposure, reduced ability to mitigate energy risks, and missed opportunities to optimize investments in clean energy and resiliency.
Next Steps
NEXT STEPS
With Board approval of the EMP recommendations, staff will develop a comprehensive implementation plan that outlines clear next steps, defined roles and responsibilities, and measurable deliverables across all four recommended action areas. The Office of Sustainability will coordinate this process and act as the agency’s Energy Management team, ensuring alignment with Metro’s broader strategic goals and providing ongoing oversight.
Successful implementation will require collaboration across Metro departments, including primarily the Office of Management & Budget, Vendor/Contract Management, Capital Planning, Program Management, and Operations. This cross-functional engagement will enable more strategic and coordinated progress in energy management, cost mitigation, and resiliency planning.
Staff will provide regular updates to the Board through Metro’s Annual Sustainability Report. The update will summarize progress against key performance indicators (KPIs), cost-benefit outcomes of implemented measures, and any new capital project funding requests required to advance EMP priorities. These updates will also capture lessons learned, enabling the EMP to remain a flexible, adaptive framework responsive to evolving energy, fiscal, and climate conditions.
Attachment
ATTACHMENT
Attachment A - Energy Master Plan
Prepared by: Cris B. Liban, Deputy Chief Sustainability Officer,
(213) 922-2471
Uduak-Joe Ntuk, Senior Director, Office of Sustainability, (213) 922-4197
Reviewed by: Tim Lindholm, Chief Program Management Officer,
(213) 922-7297
