HomeMy WebLinkAboutRESO 9381Resolution No. 9381
Resolution of the Council of the City of Palo Alto Amending the City
of Palo Alto's Renewable Energy Resources Procurement Plan in
Compliance with the California Energy Commission's Enforcement
Procedures for the Renewables Portfolio Standard for Local Publicly
Owned Utilities
RECITALS
A. In April 2011, Governor Brown signed Senate Bill Xl-2, the California Renewable
Energy Resources Act, into law.
B. Senate Bill Xl-2 states that the intent of the Legislature is to increase the amount
of electricity generated per year from eligible renewable resources to an amount that averages
20 percent of total electricity sold to retail customers in California by December 31, 2013, and
at least 33 percent by December 31,2020.
C. Senate Bill Xl-2 applies to local publicly owned utilities, including the City of Palo
Alto acting by its Utilities Department ("CPAU").
D. The City's Long-term Electric Acquisition Plan's ("LEAP") Objectives, Strategies,
and Implementation Plan sets an RPS goal that requires 33 percent of City of Palo Alto's
electricity retail sales be served by eligible renewable energy resources by year-end 2015
(Resolution Number 9152).
E. On December 12, 2011, the Council adopted Resolution Number 9215, approving
the City's Electric Utility Renewable Energy Resources Procurement Plan ("CPAU RPS
Procurement Plan"), in compliance with Senate Bill Xl-2. This action did not preclude Council's
implementation of the more aggressive Renewables Portfolio Standards it adopted earlier that
year.
F. Senate Bill Xl-2 also directed the CEC to adopt regulations specifying procedures
for enforcement of the Renewables Portfolio Standards for publicly owned utilities such as
CPAU. The CEC subsequently developed and adopted their "Enforcement Procedures for the
Renewables Portfolio Standard for Local Publicly Owned Electric Utilities" C'CEC RPS
Regulations"}, effective October 1, 2013.
G. The 2013 CEC RPS Regulations contain additional requirements, including
specific formulae for calculating the RPS targets, content category definitions and reporting
deadlines, which require a revision to the City's RPS Procurement Plan. The CEC RPS Regulations
also provide more optional compliance measures that have been included in the amended RPS
Procurement Plan.
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The Council for the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council hereby finds and declares:
1. Changes in law, reflected in Senate Bill X 1-2, require the City of Palo Alto to
conform to California's Renewable Energy Resources Program by increasing
the amount of electricity generated from eligible renewable energy resources
per year, so that amount equals at least 33% of total retail sales of electricity
in California by year-end 2020. Though the requirements of the State's RPS
program are applicable to local publicly owned utilities, the Council as the
local governing body is responsible for implementation ofthose requirements
and the enforcement is delegated to the CEC and the California Air Resources
Board.
2. The City must adopt the procurement requirements set forth in California
Code of Regulations, Title 20, Division 2, Chapter 13, Sections 3200 -3208 and
Title 20, Division 2, Chapter 2, Article 4, Section 1240 (IfCEC RPS Regulations").
3. The City adopts rules permitting CPAU to apply historic carryover due to
CPAU's early investment in renewable energy resources, to be applied to
CPAU's RPS procurement target for the compliance period ending December
31, 2013, or for any subsequent compliance period, according to the
requirements set forth in section 3206 (a)(5) ofthe CEC's RPS Regulations.
4. The City adopts rules permitting CPAU to apply excess procurement in one
compliance period to subsequent compliance periods, according to the
requirements set forth in section 3206 (a)(l) D. of the CEC's RPS Regulations.
5. The City adopts rules regarding conditions that allow for a waiver oftimely
compliance and cost limitations, according to the requirements set forth in
Public Utilities Code section 399.15 and the CEC's RPS Regulations.
6. The City adopts rules permitting CPAU to reduce its portfolio balance
requirements, according to the requirements set forth in section 3206 (a)(4)
ofthe CEC's RPS Regulations.
7. The City has provided at least 10 days' advance notice to the public and the
CEC regarding the proposed adoption ofthe City's RPS Procurement Plan.
SECTION 2. The Council approves the amendments to the City of Palo Alto Renewable
Energy Resources Procurement Plan and its effective date of November 12, 2013. The City
Manager or his designee, the Director of Utilities, shall review the CPAU RPS Procurement Plan
annually in order to determine the City's compliance with California's RPS program, and shall
comply with the reporting requirements as described in Section 3207 of the CEC's RPS
Regulations.
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