HomeMy WebLinkAboutRESO 9379Resolution No. 9379
Resolution of the Council of the City of Palo Alto Repealing Resolution No. 9225
and Expanding the City Manager's Authority to Execute Transactions under the Master
Ren.ewable Energy Certificate Purchase and Sale Agreement with Thirteen
Pre-Qualified Suppliers in an Amount Not to Exceed $5,000,000 Annually During
Calendar Years 2013-2018
A. The City of Palo Alto (the "City") provides electricity to residential and commercial
customers located within its jurisdictional boundary.
B. The Council established the PaloAltoGreen voluntary renewable energy program
(the "PAG Program") in March 2003 and it has achieved the highest participation rate of any
'green power program' in the United States.
C. Implementing the PAG Program requires the City to engage in the purchases (and
incidental sales)of renewable energy certificates ("RECs") to meet the PAG Program's retail
customer demands in a competitive manner.
D. California's Senate Bill X12 (2011) requires all load serving entities to have a
Renewable Portfolio Standard (RPS) of at least 33 percent by 2020. Through Resolution No.
9241 the City Council adopted an RPS of 33 percent by 2015. RPS enforcement procedures
adopted by the California Energy Commission (CEC) in 2013 permit RECs to meet RPS
requirements under certain conditions, and the City of Palo Alto adheres to the CEC's
renewable resource eligibility requirements set forth in its enforcement procedures.
E. Through Resolution No. 9322, the Council approved a Carbon Neutral Plan for the
electric supply portfolio to achieve carbon neutrality in calendar year 2013 with a rate impact
not to exceed 0.15 cents per kilowatt hour. The Carbon Neutral Plan allows for the use of RECs
to achieve carbon neutrality.
F. Through Resolution No. 9225 Council delegated the authority to the City Manager,
or his designee, to negotiate and sign Master Agreements with the following suppliers in
connection with the purchases (and incidental sales) of RECs in furtherance of the PAG
Program, but did not grant authority to purchase RECs in support ofthe City's RPS or Carbon
Neutral Plan. The annual appropriation for the RECs purchases was not to exceed the annual
expenditure amount of one million five hundred thousand dollars ($1,500,000) during calendar
years 2012 through 2016, inclusive.
1. 3Degrees Group, Inc.
2. Bonneville Environmental Foundation.
3. Constellation Energy Commodities Group.
4. EDF Trading North America, LLC.
5. Element Markets, LLC.
6. Idaho Wind Power Partners 1, LLC.
7. Lakeview Green Energy, Inc.
131028 dm 6051988 1
8. Nexant, Inc.
9. NextEra Energy Power Marketing, LLC.
10. Pacific Corp.
11. Powerex Corp.
12. Shell Energy North America (US), L.P.
13. Sterling Planet Holdings, Inc.
G. Master Agreements, the form of which was approved by Council via Resolution No.
9225 and is attached to Staff Report 2429, were negotiated and executed with the thirteen
suppliers listed above, and expenditures for calendar year 2012 and 2013 are within the
delegated annual expenditure amount.
H. Expansion of the authority delegated to the City Manager under Resolution No.
9225 is needed to implement the City'S PAG program, RPS and Carbon Neutral Plan.
The Council ofthe City of Palo Alto RESOLVES as follows:
SECTION 1. Resolution No. 9225 is hereby repealed in its entirety.
SECTION 2. The Council hereby authorizes the City Manager, or his designee, to
execute purchases (and incidental sales) of RECs to meet the needs of City's PAG Program, RPS
and Carbon Neutral Plan by negotiating and executing Master Agreements with the following
thirteen pre-qualified suppliers. The aggregate REC transactions shall not to exceed the annual
expenditure amount of five million dollars ($5,000,000) during calendar years 2013 through
2018, inclusive.
1. 3Degrees Group, Inc.
2. Bonneville Environmental Foundation.
3. Constellation Energy Commodities Group.
4. EDF Trading North America, LLC.
5. Element Markets, LLC.
6. Idaho Wind Power Partners 1, LLC.
7. Lakeview Green Energy, Inc.
8. Nexant, Inc.
9. NextEra Energy Power Marketing, LLC.
10. Pacific Corp.
11. Powerex Corp.
12. Shell Energy North America (USL L.P.
13. Sterling Planet Holdings, Inc.
II
II
131028 dm 6051988 2
II
SECTION 3. The Council finds that the adoption of this resolution does not meet the
definition of a project under the California Environmental Quality Act (CEQA) pursuant to
California Public Resources Code Section 21065, thus no environmental assessment is required.
INTRODUCED AND PASSED: November 4,2013
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
ATIEST: /
~~(
~CityClerk Mayor
APPROVED AS TO FORM: APPROVED:
131028 dm 6051988 3