HomeMy WebLinkAboutRESO 9396Resolution No. 9396
Resolution of the Council ofthe City of Palo Alto Determining that a Target for the
City of Palo Alto Utilities to Procure Energy Storage Systems is Not Appropriate
Due to Lack of Cost-Effective Options
RECITALS
A. California's energy storage law, hereinafter referred to as Assembly Bill (AB) 2514,
requires the governing board of each local publicly-owned electric utility (POU) to determine
appropriate targets, if any, for the utility to procure viable and cost-effective energy storage
systems.
B. In addition to requiring POUs to evaluate the feasibility of energy storage targets,
AB 2514 also requires that all procurement of energy storage systems by a POU be cost-
effective.
C. To conform to California Public Utilities Code § 2836(b)(1) and § 2836.6, and
consistent with the City'S Long-Term Acquisition Plan (LEAP), staff undertook a study to
determine the viability and cost-effectiveness of energy storage to serve electric utility
customers in Palo Alto, which included an investigation into a variety of energy storage
technologies and their viability and cost-~ffectiveness.
D. Based on that study, staff found that the least cost energy storage technology
today is more costly than the present value of energy storage in the best case application, even
when a variety of factors including current CPAU load projections, rooftop PV penetration, and
distribution system capacity were considered, such that energy storage systems are not cost-
effective at this time.
E. At its December 4, 2013 meeting, the UAC unanimously recommended that the
City Council decline to set an energy storage procurement target for the City of Palo Alto or
provide rebate incentives for thermal energy storage because such targets and incentives are
not cost-effective.
F. The Council has reviewed staff's study, the resulting staff report and the UAC's
recommendation.
G. Based on that review, Council determines that that a target for the City of Palo
Alto Utilities to procure energy storage systems is not appropriate due to lack of cost-effective
energy storage options.
H. AB 2514 requires Palo Alto to reevaluate this determination concerning the need
for an energy storage procurement target once every three years.
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The Council ofthe City of Palo Alto ("City") RESOLVES as follows:
SECTION 1. To satisfy the City's obligations pursuant to AB 2514 and LEAP, the
Council determines that setting a target for the City of Palo Alto Utilities to procure energy
storage systems is not appropriate due to lack of cost-effective energy storage system options.
SECTION 2. The Council will reevaluate its decision not to set an energy storage
system procurement target for the City of Palo Alto Utilities within three years, as required by
AB 2514.
SECTION 3. The Council finds that the adoption of this resolution is not subject to
California Environmental Quality Act review because it does not constitute a project under
California Public Resources Code section 21065.
INTRODUCED AND PASSED: February 10, 2014
AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES:
ABSENT:
ABSTENTIONS:
APPROVED AS TO FORM:
Direct of lities
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D ector of Adm istrative serv~
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