HomeMy WebLinkAboutRESO 9344Resolution No. 9344
Resolution of the Council of the City of Palo Alto Approving A Long
Term Power Purchase Agreement with Elevation Solar C LLC for the
Purchase of Electricity Generated by Solar Electric Generating
Facilities
A. On April 12, 2011, the Governor approved Senate Bill ("SB") Xl-2, which requires
that all retail sellers of electricity in California, including publicly-owned utilities, serve 33
percent of their retail electricity sales with renewable energy by 2020.
B. On April 16, 2012, Council approved an update to the Long-term Electric
Acquisition Plan's (LEAP) strategy related to the Renewable Portfolio Standard (RPS). The
updated strategy specifies that the City's objective is to reduce the carbon intensity of the
electric portfolio by pursuing a minimum level of renewable purchases of at least 33% of retail
electricity sales by 2015.
C. On March 4, 2013, Council approved a Carbon Neutral Plan, which would enable
the City to achieve a carbon neutral electric supply portfolio starting in calendar year 2013.
D. The City is interested in purchasing power generated by renewable resources for
the benefit of its electric customers.
E. By purchasing renewable energy resources, the City will help reduce the
production of greenhouse gases, will meet its RPS requirements under SB Xl-2 and LEAP, and
will meet its Carbon Neutral Plan goals.
F. Elevation Solar C LLC ("Elevation") though its parent company, Silverado Power
LLC, proposed its project in response to the City's Request for Proposals 147538 ("RFP") in
September 2012. Its proposal is competitive with other RFP respondent proposals.
G. The execution of a power purchase agreement ("PPA") with Elevation is
anticipated to enable the City to meet an eight-percent portion of its goal of sourcing 33% of its
electric needs from renewable resources and its goal to implement the Carbon Neutral Plan.
H. The City is allocated a 100 percent share of the power from the solar project
located in Fresno CountYi California, which yields approximately 40 megawatts of plant net
output.
I. The PPA will allow the City to extend the agreements at the City's sole option for
additional five-year terms after the initial thirty year term.
J. The County of Fresno will be the lead agency for the purposes of compliance
with the requirements of the California Environmental Quality Act ("CEQA") for Elevation. Palo
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Alto will serve as a responsible agency under CEQA. As a responsible agency, Palo Alto will
comply with CEQA by considering the environmental impact report or negative declaration
prepared by the lead agency and reaching its own conclusions on whether and how to approve
this project, and by making certain findings as required under CEQA. Such findings with regard
to environmental impacts of the project will subsequently be presented to Council.
The Council ofthe City of Palo Alto does RESOLVE as follows:
SECTION 1. The Council approves the power purchase agreement between Elevation
Solar C LLC, as seller, and the City of Palo Alto, as buyer. The delivery term of the agreement is
thirty (30) years, commencing upon the commercial operation date of the planned electric
generation facility, which date is expected to be no later than December 31, 2016. The City will
receive a 100 percent share of the facility's net output. Spending authority under the
agreement shall not exceed one hundred fifty four million dollars ($154,000,000).
SECTION 2. The Council delegates to the City Manager the authority to execute on
behalf ofthe City the agreement with Elevation Solar C LLC and any confirmations executed in
connection with the agreement or documents necessary to administer the agreement that are
consistent with the established policies of the City Council.
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SECTION 3. With respect to the Council's award of the power purchase agreement
referred to in Section 1 above, the Council waives the creditworthiness requirements of Palo
Alto Municipal Code section 2.30.340(cL as that requirement may apply to Elevation Solar C
LLC.
INTRODUCED AND PASSED: June 17, 2013
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
?ikvu · /!Ju1vc City Clerk 9r ,. ~st2--~Mayor
APPROVED AS TO FORM: APPROVED:
Senior Deputy Assistant Cit ~e;tf~
Dire~es
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