HomeMy WebLinkAboutRESO 9215Resolution No. 9215
Resolution of the Council of the City of Palo Alto Approving the
City of Palo Alto Renewable Energy Resources Procurement Plan
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 of 2017 and requiring now that 33 percent of those
resources serve at least 33 percent ofthose sales by the end of 2020.
B. In April 2011, Governor Brown signed Senate Bill Xl-2, introduced by
Senators Simitian, Kehoe and Steinberg, among others. SBXl-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 ("CP AU"). 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-term Electric Acquisition Plan's ("LEAP") Objectives, Strategies, and
Implementation Plan. LEAP set an RPSgoal that requires 33 percent of electricity retail
sales be served by eligible renewable energy resources by year-end 2015.
D. Under SBXl-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 notice to the public and California Energy Commission ("CEC")
regarding any proposed modifications to its RPS procurement plan.
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 environmental benefits of their energy mixes in order to
promote stable electricity prices, protect the public health, safety and welfare, improve
environmental quality, stimulate sustainable economic development, create new
employment opportunities, and reduce reliance on imported fuels.
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.
111121 dm 0073672 1
3. Changes in law, reflected in SBXI-2, require the City of Palo Alto to confonn
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 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. 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 pennitting 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 ten (10) days' advance notice to the public and
the CEC regarding the proposed adoption of the City's RPS Procurement Plan.
SECTION 2. The Council hereby approves the City of Palo Alto Renewable
Energy Resources Procurement Plan (the "Procurement Plan"), which shall be effective
as of January 1, 2012. The City Manager or his designee, the Director of Utilities, shall
review City's Procurement Plan annually in order to detennine the City's compliance
with California's RPS program.
111121 dm 0073672 2