HomeMy WebLinkAboutRESO 9308Resolution No. 9308
Resolution of the Council of the City of Palo Alto Approving
the Continuation of the Palo Alto Clean Local Energy Accessible Now
(CLEAN) Program
RECITALS
A. On March 5, 2012, the City approved the Palo Alto Clean Local Energy Accessible
Now Program, a CLEAN program (or feed-in tariff). Under the CLEAN Program, participants who
build a new solar generating system in Palo Alto may obtain a long-term, fixed-price contract
with the City to sell the energy from the system to the City's electric utility.,
B. The first program year of Palo Alto CLEAN commenced on April 2, 2012 and
terminates on the earlier of: 1) the date the City receives applications for contracts for 4 MW of
solar capacity, or 2) December 31,2012. The City Council has not granted authority to staff to
enter in to contracts after December 31, 2012.
C. There have been no applications for the program to-date, but the City wants to
continue the program past December 31, 2012.
The Council ofthe City of Palo Alto ("City") RESOLVES:
SECTION 1. Revised Program Eligibility Requirements for Palo Alto CLEAN are
adopted as shown in Exhibit A.
SECTION 2. 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 Program
Eligibility Requirements described in Section 1. The total CLEAN Program cost commitment
made by the City during the life of the Program shall not exceed $16,700,000.
SECTION 3. The Council finds that the City of Palo Alto Utilities' (CPAU's) purchase of
energy from local renewable sources provides additional local benefits to CPAU when
compared to energy purchased outside Palo Alto, which in turn become benefits to CPAU
ratepayers and the local community. These benefits include a reduction in CPAU's costs and
energy losses associated with energy transmission and distribution, and a reduction in CPAU's
capacity requirements. When the City purchases energy from local sources, a portion ofthe
City's electric expenditures remain within the community, which provides revenue for local
economic development. Locating generation near load centers can also reduce the need for
new transmission lines, thus reducing the environmental impacts ofthe elect'ric system and
improving reliability in transmission-constrained regions like the Greater Bay Area. The Council
therefore finds that continued implementation of the Palo Alto CLEAN Program is a reasonable
cost of providing electric service to CPAU's electric customers.
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SECTION 4. The Council finds that the adoption of this resolution is not subject to
California Environmental Quality Act review under California Public Resources Code section
21080(b)(8), because the rate adopted reflects the reasonable cost of the CLEAN Program's
operating expenses, including the cost of purchasing renewable energy from local solar
generating systems, and the value of local benefits to CPAU and its ratepayers as described in
SECTION 3 of this resolution.
INTRODUCED AND PASSED: DECEMBER 17, 2012
AYES: BURT, ESPINOSA, HOLMAN, KLEIN, SCHARFF, SCHMID, SHEPHERD, YEH
NOES:
ABSENT: PRICE
ABSTENTIONS:
APPROVED AS TO FORM:
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Senior O~ City Attorney
.Ass'~irANI
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Mayor
APPROVED:
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Dir~iti
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