HomeMy WebLinkAboutRESO 9393Resolution No. 9393
Resolution of the Council of the City of Palo Alto Increasing the Palo Alto Clean Local Accessible
Now (CLEAN) Program Cap to 3 Megawatts of Generating Capacity
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 Palo Alto 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 was
originally set to terminate on December 31, 2012.
C. On December 17, 2012, Council approved Resolution 9308, which continued Palo
Alto CLEAN and established a maximum total Palo Alto CLEAN Program cost commitment of
$16,700,000 over the life of the program. This amount was sufficient for a program cap of 2
megawatts (MW) of generating capacity.
D. The City now wants to increase the program cap to 3 MW of generating capacity,
while continuing to offer the program at the current price of 16.5 cents per Kilowatt-hour for a
20 year contract.
The Council of the City of Palo Alto ("City") RESOLVES as follows:
SECTION 1. The Council adopts revised Program Eligibility Requirements for Palo Alto
CLEAN, as shown in Exhibit A.
SECTION 2. The Council 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 $20,000,000, which is sufficient for a
program cap of 3 MW of generating capacity.
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 of the electric system and
improving reliability in transmission-constrained regions like the Greater Bay Area. When solar
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systems are installed on rooftops and parking facilities, the shade created, reduces the energy
required for cooling, and creates value to vehicle owners. In addition, as new technology and
energy storage systems are developed, the local solar generation, in combination with storage
systems, has the potential to provide resiliency to the City's electric distribution system. The
Council therefore finds that offering the Palo Alto CLEAN Program to participants is a
reasonable cost of providing electric service to CPAU's electric customers.
SECTION 4. The Council finds that the adoption ofthis 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: February 3, 2014
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
~9·~ City Clerk
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