HomeMy WebLinkAboutRESO 9235Resolution No. 9235
Resolution of the Council of the City of Palo Alto Approving the
Palo Alto Clean Local Energy Accessible Now Program, Including
the Policies and Design Guidelines, As Amended, the CLEAN
Program Eligibility Requirements, the Power Purchase Agreement
and the Interconnection Agreement, and Granting the City Manager
The Authority to Sign The Contracts For Local Renewable
Resources in an Amount Not To Exceed $1,180,000 per Year
A. The City has adopted goals and policies in support of the use of renewable energy
in meeting a portion of the City's wholesale electric portfolio needs, including Comprehensive
Plan Goal N-9 (a clean, efficient, competitively-priced energy supply that makes use of cost-
effective renewable resources), the Climate Protection Plan, Chapter 3 (Utilities), and the Long-
Term Electric Acquisition Plan (LEAP) Strategy #3 ("Renewable Portfolio Standard" or "RPS").
B. The Council finds that energy from local sources provides certain benefits when
compared to imported energy, including a reduction in costs and energy losses associated with
energy's transmission and distribution, the value of a reducing the City's capacity requirements,
and the economic development associated with purchasing power produced within Palo Alto
rather than outside it.
C. The City has adopted in its LEAP Implementation Plan Goal #9, which calls for
the evaluation of the potential of a feed-in tariff ("FIT") program in meeting a portion of its RPS
goals from local renewable sources, Goal #10, which calls for approval ofthe policy elements of
such a plan if determined to be feasible, and Goal #19, which call for adoption of rates, rules, and
standard contracts in support of those policies.
D. On August 1,2011 the City adopted the Policies and Guidelines for Development
of a FIT Program, which will be amended, and it now wishes to adopt program eligibility rules
and requirements, an amended utilities rule· and regulation, and two standard form contracts in
support. of those policies.
E. Since August 2011, the Finance Committee has deliberated on the FIT program,
which now will be known as the "Palo Alto Clean Local Energy Accessible Now Program" (the
"CLEAN Program").
F. The Council determines that it is in the public interest to incent wholesale solar
projects located wholly within Palo Alto for the purpose of initiating and increasing participation
in the CLEAN Program. Under that program, the City anticipates that City staff, host customers,
and solar energy developers and installers will mutually benefit from an enhanced familiarity
with the CLEAN program's protocol, guidelines, and requirements, and as a result the
development of this form of distributed generation in Palo Alto will lead to lower costs for
similar proj ects in the future.
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G. On or about March 5, 2012, the Council will adopt a resolution approving
amendments and an addition to Utilities Rule and Regulation 27, pertaining to generator
interconnection.
NOW, THEREFORE, the Council for the City of Palo Alto does hereby RESOLVE
as follows:
SECTION 1. A Power Purchase Agreement, attached hereto as Exhibit A, IS
hereby approved in connection with the implementation of the CLEAN Program.
SECTION 2. An Interconnection Agreement, applicable to generators not
subject to net energy metering, attached hereto as Exhibit B, is hereby approved in connection
with the implementation of the CLEAN Program.
SECTION 3. The Program Eligibility Requirements, attached hereto as Exhibit
C, are hereby approved in connection with the implementation of the CLEAN Program.
SECTION 4. The Policies and Design Guidelines for the CLEAN Program, as
amended, attached hereto as Exhibit D, are hereby approved in connection with the
implementation of the CLEAN Program.
SECTION 5. The prices at which the City may purchase solar energy under the
Power Purchase Agreement may include up to an additional 0.5 cents per kilowatt-hour for the
output of one or more solar energy generating facilities, subject to the following requirements:
(a) the facilities shall be located wholly within the city of Palo Alto, (b) the facilities shall deliver
electrical energy to the City's electric distribution system without offsetting on-site loads, except
in an incidental manner, (c) the facilities shall have an aggregate capacity not exceeding five
megawatts, and (d) applications for participation in the CLEAN Program shall be submitted by
the owners or operators of the facilities to the City on or before December 31, 2012.
SECTION 6. The Council hereby authorizes the City Manager or his designee to
sign contracts for the output of one or more solar energy generating facilities meeting the
requirements described in Section 5. The total cost commitment made by the City under the
Power Purchase Agreements for 2012 shall not exceed $23,600,000.
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