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HomeMy WebLinkAboutRESO 9512DocuSign Envelope I 0: A269FOC8-182B-49FD-BC51-8C012FOFC 146 Resolution No. 9512 Resolution of the Council of the City of Palo Alto Reducing the Contract Price for the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program from 16.5 C/kWh to between 10.3-10.4¢/kWh for Solar Resources, Expanding the CLEAN Program's Eligibility to Non-solar Renewable Energy Resources and Adding a 25-Year Contract Term Option RECITALS A. On March 5, 2012, the City approved the Palo Alto Clean Local Energy Accessible Now (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 February 3, 2014, Council approved Resolution 9393, which continued Palo Alto CLEAN with a contract price of 16.5cents per Kilowatt-hour (kWh) and established a maximum total Palo Alto CLEAN Program cost commitment of $20,000,000 over t.he life of the program. This amount was sufficient for a program cap of 3 megawatts (MW) of generating capacity. D. The City wants to continue to offer the program for solar resources with the existing 3 MW cap of generating capacity, while adding a 25-year contract term option and simultaneously reducing the contract price offered from 16.5 cents per kWh to 10.3 cents per kWh for a 20-year contract or 10.4 cents per kWh for a 25 year contract. E. The City also wants to open the program to local, non-solar eligible renewable energy resources and offer contract prices of 9.3 cents per kWh for a 20-year contract term or 9.4 cents per kWh for a 25-year contract term for such resources. F. The City intends that non-solar, local eligible renewable energy resources not be counted toward the Palo Alto CLEAN Program's 3 MW generating capacity cap for solar resources, but be subject to a separate 3 MW generating capacity cap of its own. The Council of the City of Palo Alto ("City") RESOLVES: SECTION 1. To modify the CLEAN Program to: a. Add a 25-Year Contract Term Option in Addition to the CLEAN Program's Existing 20-Year Contract Term Option; b. Continue the Palo Alto CLEAN Program for solar energy resources, reducing the contract price from 16.5 cents per kilowatt-hour (C/kWh) to a contract price equal to the avoided cost of solar energy resources of 10.3 C/kWh for a 20-year contract, and 10.4 C/kWh for a 25-year contract term, and to continue with a CLEAN Program limit for solar energy resources of 3 megawatts (MW); and 150701 jjs 018-01-0024 1 DocuSign Envelope ID: A269FOC8-182B-49FD-BC51 -8C012FOFC 146 c. Expand the CLEAN Program to allow non-solar eligible renewable energy resources to participate, and offer such resources a contract price equal to their avoided cost of 9.3 cents per kilowatt-hour ( C/kWh) for a 20-year contract, and 9.4 C/kWh for a 25-year contract term, with a program limit of 3 MW. SECTION 2. To implement such changes, the Council adopts revised Palo Alto CLEAN Program Eligibility Rules Requirements, set forth in Exhibit A-1 attached to this Resolution. SECTION 3. The Council authorizes the City Manager or his designee to sign contracts for the output of one or more solar, or other non-solar eligible renewable energy resource meeting the CLEAN Program Eligibility Rules and Requirements described in Section 1. The total CLEAN Program cost commitment made by the City during the life of the program shall not exceed $75,000,000, which is sufficient for a program cap of 3 MW of local solar generating capacity and 3 MW of local, non-solar generating capacity over a 25-year contract term. II II II II II II II II II II II II II II II II 150701 jjs 018-01-0024 2 DocuSign Envelope ID: A269FOC8-182B-49FD-BC51-8C012FOFC 146 SECTION 4. The Council finds that the adoption of this resolution is not subject to California Environmental Quality Act {CEQA) 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. Approval of the amended CLEAN Program Eligibility Rules and Requirements is not a project under CEQA, and therefore, no environmental assessment is necessary. INTRODUCED AND PASSED: May 27, 2015 AYES: BERMAN, BURT, DUBOIS, HOLMAN, SCHMID, WOLBACH NOES: FILSETH, SCHARFF ABSENT: KNISS ABSTENTIONS: ATIEST: APPROVED AS TO FORM: Senior Deputy City Attorney 150701 jjs 018-01-0024 Mayor APPROVED: QDocuSigned by: o·~g-.~ 39E7298FB2064DB ... City Manager GDocuSigned by: t.~ P~ .. ~~ 229154BCBOAB476 ... Director pf Administrative Services 3 Certificate Of Completion Envelope ld: A269FOC8182B49FDBC518C012FOFC 146 Subject: Please DocuSign this document: RESO 9512 PA Clean Program.pdf Source Envelope: Document Pages: 3 Certificate Pages: 5 AutoNav: Enabled Envelopeld Stamping: Enabled Signatures: 3 Initials: 0 Time Zone: (UTC-08:00) Pacific Time (US & Canada) Record Tracking Status: Original 10/14/2015 10:08:35 AM Signer Events Jessica Mullan Jessica.Mullan@CityofPaloAito.org Jessica.Mullan@CityofPaloAito.org City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered ID: Lalo Perez Lalo.Perez@CityofPaloAito.org Chief Financial Officer City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered ID: James Keene james.keene@cityofpaloalto.org City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 4/14/2015 5:40:07 PM ID: 44fe333a-6a81-4cb 7 -b 7d4-9254 73ac82e3 In Person Signer Events Editor Delivery Events Agent Delivery Events Intermediary Delivery Events Holder: Kim Lunt kimberly.lunt@cityofpaloalto.org Signature Using IP Address: 199.33.32.254 I,DocuSigned by: L.:'r. P---~ 229154BC80A8476 ... Using IP Address: 184.188.177.20 Signed using mobile 0 0ocu51gned by: L?t.:2:t! Using IP Address: 24.7.29.7 Signature Status Status Status Docu~. ilili sECURlD Status: Completed Envelope Originator: Kim Lunt 250 Hamilton Ave Palo Alto , CA 94301 kimberly.lunt@cityofpaloalto.org IP Address: 199.33.32.254 Location: DocuSign Timestamp Sent: 10/14/2015 10:11:16 AM Viewed: 11/24/2015 9:05:06 AM Signed: 12/3/2015 9:34:33 AM Sent: 12/3/2015 9:34:34 AM Viewed: 12/3/2015 9:36:57 AM Signed: 12/3/2015 9:37:35 AM Sent: 12/3/2015 9:37:36 AM Viewed: 12/28/2015 8:44:46 AM Signed: 12/28/2015 8:44:54 AM Timestamp Timestamp Timestamp Timestamp