HomeMy WebLinkAboutRESO 9320Resolution No. 9320
Resolution of the Council of the City of Palo Alto Adopting a Policy
Pertaining to the Purchase of Energy from Potential
Green Waste-to-Energy Facilities
RECITALS
A. On November 3, 2011, Palo Alto voters approved Measure E, which undedicated
10 acres of existing parkland in Byxbee Park (the "Measure E Site") for the exclusive purpose
of evaluating the development of an Energy/Compost facility, which could potentially process
yard trimmings, food waste, sewage sludge, and other organic material.
B. The City is proceeding with a long-term planning process related to the future of
the regional Water Quality Control Plant.
C. The City plans to evaluate various alternative types of waste-to-energy facilities
at those sites. As part of this process, proposals will be solicited from project developers.
D. The City, in order to properly evaluate the various alternatives and solicit
proposals from developers, intends to adopt a policy pertaining to the use of the energy
generated by the facility or facilities.
The Council ofthe City of Palo Alto ("City") hereby RESOLVES as follows:·
SECTION 1. It is the policy of the City to provide a range of alternatives for the use of
energy generated by a potential waste-to-e'nergy facility at the regional Water Quality Control
Plant and the Measure E Site. These alternatives may include, but are not limited to,
compressed natural gas vehicle fueling or electricity generation. Electricity generated may be
1) used by the facilities on the Measure E site or the regional Water Quality Control Plant,
which would reduce the amount of electricity supplied by the City's electric utility to those
facilities, 2) sold to the City's electric utility for distribution to customers, or 3) sold to an entity
outside of the City's electric utility service area.
SECTION 2. To enable this policy the City will evaluate its Utilities Rules and Regulations
and Utility Rate Schedules to determine whether changes are advisable or required to enable
these alternatives.
SECTION 3. It is the policy of the City to provide an optional default purchase price for
energy from a waste-to-energy project, commencing in calendar year 2018. This default
purchase price will be equal to the City's forecasted avoided cost in 2018 based on a scenario in
which the City's avoided cost of electricity compares favorably to its current costs. The default
purchase price is 7.7 C/kWh for electricity from a project certified by the California Energy
Commission (CEq as an Eligible Renewable Energy Resource for the purpose of fulfilling
Renewable Portfolio Standard goals. "Renewable Portfolio Standard" refers to the standard
adopted by the State of California pursuantto Senate Bill 21st Extraordinary Session (SBXl 2,
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Chapter 1, Statutes 2011-12), and California Public Utilities Code Sections 399.11 through
399.32, inclusive, as may be amended, setting minimum renewable energy targets for local
publicly owned electric utilities.
SECTION 4. It is the policy of the City not to consider the injection of biogas associated
with a waste-to-energy project into its gas distribution system at this time.
SECTION 5. The Council finds that the adoption of this Resolution does not constitute a
project under the California Environmental Quality Act, California Public Resources Code
section 21065.
INTRODUCED AND PASSED: January 28,2013
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
Sr. Deput . Attorney
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Mayor
APPROVED: