HomeMy WebLinkAboutRESO 9214Resolution No. 9214
Resolution of the Council of the City of Palo Alto Approving the
City of Palo Alto Renewables Portfolio Standards Enforcement
Program
A. Since 2002, California has adopted and implemented a California Renewables
Portfolio Standard ("RPS") program, requiring initially that the amount of electricity generated
by eligible renewable energy resources equal at least 20 percent of electricity retail sales per year
by the end of2017 and requiring now that those resources equal at least 33 percent of those sales
by the end of 2020.
B. In April 2011, Governor Brown signed Senate Bill XI-2, introduced by Senators
Simitian, Kehoe and Steinberg, among others. SBXI-2, which will become effective in
December 2011, is applicable to local publicly owned utilities, including the City of Palo Alto
acting by its Utilities Department. The revised RPS goals require that the amount of electricity
generated by eligible renewable energy resources equal at least 20, 25 and 33 percent of
electricity retail sales by year-end 2013,2016, and 2020, respectively.
C. On March 7,2011, the Council adopted Resolution Number 9152, approving the
Long-tenn Electric Acquisition Plan's ("LEAP") Objectives, Strategies, and Implementation
Plan. LEAP set an RPS goal that requires 33 percent of retail sales be served by eligible
renewable energy resources by year-end 2015.
D. Under SBXI-2, in particular, California Public Utilities Code sections 399.13,
399.15, 399.16 and 399.30, the City must modify its RPS procurement plan to conform to state
law and provide sufficient notice to the public regarding any proposed modifications to its RPS
procurement plan. On or before 'January 1, 2012, the City must adopt a program for. the
enforcement of the provisions of SBXI-2 that are applicable to local publicly owned utilities,
and provide at least 30 days' advance notice to the public regarding the proposed adoption ofthe
City's RPS enforcement program.
NOW, THEREFORE, the Council for the City of Palo Alto does hereby RESOLVE
as follows:
SECTION 1. The Council hereby finds and declares:
1. Since 2002, the California Legislature has enacted legislation that would cause
electrical corporations and local publicly owned utilities to increase the diversity, reliability,
public health and environm~tal benefits of their energy mixes in order to promote stable
electricity prices, prqtec~tlle public health, safety and welfare, improve environmental quality,
stimulate sustainable economic development, create new employment opportunities, and reduce
reliance on imported fuels.
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2. The development of renewable energy resources may ameliorate air quality
problems throughout California, including the Bay Area and Palo Alto, and improve public
health by reducing the burning of fossil fuels and associated environmental impacts.
3. Changes in law, reflected in SBXl-2, require the City of Palo Alto to conform to
California's Renewable Energy Resources Program by increasing the amount of electricity
generated from eligible renewable energy resources per year, so that amount equals at least 33%
of total retail sales of electricity in California by year-end 2020. Though the requirements of the
State's RPS program is made applicable to local publicly owned utilities, the Council as the local
governing body is responsible for implementation of those requirements and the enforcement is
delegated to the California Energy Commission ("CEC") and the California Air Resources
Board.
4. Public Utilities Code section 399.30 requires local publicly owned utilities to
adopt and implement a renewable energy resources procurement plan. The plan would require
the procurement of a minimum quantity of electricity products from eligible renewable energy
resources, including renewable energy credits, as a specified percentage of total kilowatthours
sold to retail customers. Procurement targets for a minimum quality of eligible renewable energy
resources for the periods, January 1, 2011 to December 31, 2013 (20%), January 1, 2012 to
December 31, 2016 (25%), and January 1, 2017 to December 31, 2020 (33%), must be
implemented. The program for enforcement shall be adopted by January 1,2012. Notice of the
Council's deliberations on the City's renewable energy resources procurement plan must be
posted in compliance with the Brown Act, and notice of the meetings must be provided to the
CEC. The City must provide annually documentation regarding the eligible renewable energy
procurement contracts. The City must report to the City's utility customers regarding public
goods fund expenditures, the resource mix, and the progress made by the City in implementing
its RPS.
5. The City must adopt the procurement requirements set forth in Public Utilities
Code section 399.16.
6. The City may adopt rules permitting CP AU to apply excess procurement in one
compliance period to subsequent compliance periods according to the requirements set forth in
Public Utilities Code section 399.13.
7. The City may adopt rules regarding conditions that allow for the delaying of
timely compliance and cost limitations according to the requirements set forth in Public Utilities
Code section 399.15.
8. The City has provided at least thirty (30) days' advance notice to the public
regarding the proposed adoption of the City's RPS enforcement program and must provide at
least 10 days' advance notice of any meeting of the Council to consider any substantive change
to the enforcement program to be adopted by the City.
SECTION 2. The Council hereby approves the Program for Enforcement of the City
of Palo Alto Renewables Portfolio Standards (the "Program") and its effective date of January 1,
2012. In implementation of the Program, the City Manager or his designee, the Director of
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