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Home My WebLink AboutRESO 9552DocuSign Envelope ID: 861 BD492-2F9D-4FA3-8566-A7316CBEF1 BA RESOLUTION NO.: 9552 [Correcting Resolution No.: 9512] Resolution of the Council of the City of Palo Alto Amending and Correcting Resolution No.: 9512 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 C/kWh for Solar Resources, Expanding the CLEAN Program's Eligibility to Non-Solar Renewable Energy Resources and adding a 25-year Contract Term Option and adopting revised Palo Alto CLEAN Program Eligibility Rules Requirements RECITALS A. On May 27, 2015, the City Council of the City of Palo Alto ("the City") adopted Resolution No.: 9512 modifying the City's CLEAN Program to: ·-~-~ ~--~---~ i. Add a 25-Year Contract Term Option in Addition to the CLEAN Program's Existing 20- Year Contract Term Option; ii. 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 iii. 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; and iv. Authorize 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. B. At the time of adoption of Resolution 9512, Exhibit A-1 to the Resolution was inadvertently omitted from the resolution. Exhibit A-1 contains CLEAN Program Eligibility Rules and Requirements necessary to implement changes to the Palo Alto CLEAN Program. 1 DocuSign Envelope ID: 861 BD492-2F9D-4FA3-8566-A7316CBEF1 BA C. Based on the foregoing, the City Council of the City of Palo Alto finds and determines it advisable to amend Resolution 9512 of the City to add Exhibit A-1, CLEAN Program Eligibility Rules and Requirements. The Council of the City of Palo Alto ("City") RESOLVES: SECTION 1: Resolution 9512 is hereby amended to include Exhibit A-1, attached here to. SECTION 2: This resolutions supplements, amends and corrects the original resolution No.: 9512 only to the extent necessary to include Exhibit A-1 and, except to the extent specifically amended by this resolution, the original resolution shall remain in full force and effect. SECTION 3. 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)(8L 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: October 5, 2015 AYES : BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: ABSTENTIONS: ATIEST:~-~ <;;E;A~ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ~DocuSignod by: 11M~ $fwv.p :i0•4nlili5:i574~ QDocuSigned by: o"~tr~· 39E7298FB2064DB. .. Senior Deputy City Attorney City Manager Director Administrative Services 2 / DocuSign Envelope 10: B61 BD492-2F9D-4FA3-8566-A7316CBEF1 BA PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW) PROGRAM ELIGIBILITY RULES AND REQUIREMENTS EXHIBIT A-1 A. PARTICIPATION ELIGIBILITY: The Palo Alto Clean Local Energy Accessible Now Program (the "CLEAN Program") is open to participation by any Eligible Re11ewable Energy Resource, as defined in Section D.4, that satisfies these Program Eligibility Rules and Requirements. B. TERRITORIALITY REQUIREMENT: In order to be eligible to participate in the CLEAN Program, an Eligible Renewable Energy Resource must be located in and generating electricity frqm within the utility service area of the City of Palo Alto. C. PRICES AND TERM FOR ELIGIBLE RENEWABLE RESOURCES: The following purchase price shall apply to the electricity produced by an Eligible Renewable Energy Resource participating in the Program, except as provided in Section 0.5. Solar Energy Resources: Contract Term 20 years 25 years Other, Non-Solar Eligible Renewable Energy Resources: Contract Term 20 years 25 years D. ADDITIONAL RULES AND REQUIREMENTS: Contract Price $0.165 I kWh $0.165 I kWh Contract Price $0.093 I kWh $0.0941 kWh 1. The owner of the Eligible Renewable Energy Resource shall enter into an Eligible Renewable Energy Resource Power Purchase Agreement ("PPA") with the City of Palo Alto prior to delivering energy to the City. 2. The maximum, aggregate generation capacity from all solar facilities participating in the CLEAN Program is three (3) Megawatts (11MW") (the "Program Capacity -Solar", based on the generating facility's California Energy Commission rating, CEC-AC). Generating capacity from non-solar, eligible renewable energy resources will not be counted towards this 3 MW cap, but will be subject to a separate 3 MW cap of its own (the 11Program Capacity -Non-Solar". 3. An application for participation in the CLEAN Program to sell output to the City (the "Application") may be submitted at any time. Applications will be considered in the Effective ___ _ DocuSign Envelope ID: 861 BD492-2F9D-4FA3-8566-A7316CBEF1 BA PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW) PROGRAM ELIGIBILITY RULES AND REQUIREMENTS order received. 4. Eligible Renewable Energy Resource means an electric generating facility that: (a) is defined and qualifies as an "eligible renewable energy resource" under California Public Utilities Code Section 399.12(e) andCalifornia Public Resources Code Section 25741, respectively, as amended; and (b) meets the territoriality requirement set forth in Section B. 5. The California Energy Commission's ("CEC") certification of the Eligible Renewable Energy Resource shall be required within six (6) months of the commercial operation date of the generating facility; the facility's owner shall provide written notice of the CEC's certification to the City within ten (10) business days of receipt of said certification. If the City agrees, in its sole discretion, to take delivery of the generating facility's electricity prior to the CEC's certification, then, as the facility's electricity cannot be considered in fulfillment of the City's RPS requirements, the price that the City will pay for the generating facility's electricity (the "Pre-Certification Price") will be set to $0.076 per kWh (for a 20-year contract term) or $0.08 per kWh (for a 25-year contract term), based on the estimated levelized cost of brown power over a 20-year or 25-year period, respectively. Upon the CEC's certification of the generating facility and the provision of notice of such certification to the City in accordance with this section, the City wi,ll pay the Price set forth in Section C of these CLEAN Program Rules and Requirements and the PPA (collectively referred to as the "Contract Price") for the generating facility's electricity delivered on and after the date of the CEC's certification. The City will, in its sole discretion, "true-up", as appropriate, the difference between the Contract Price and the Pre-Certification Price for any electricity received and paid for by the City, effective as of the date of certification of the Eligible Renewable Energy Resource. 6. If an Eligible Renewable Energy Resource is authorized to participate in the CLEAN Program, then that Resource shall not be entitled to receive any rebate or other incentive from the City's Photovoltaic (PV) Partners Program or any other similar incentive program funded by the City's ratepayers. Tp the extent any rebate or incentive is paid to the owner of the Resource, that rebate or incentive shall be disgorged and refunded to the City upon 30 days' notice, if the Eligible Renewable Energy Resource continues to participate in the CLEAN Program. If a rebate or an incentive has been paid to the Eligible Renewable Energy Resource, then that Resource shall be ineligible to participate in the CLEAN Program. 7. All electricity generated by the Eligible Renewable Energy Resource shall be delivered only to the City. No portion of the electricity may be used to offset any load of the generating facility (other than incidental loads associated with operating the generating facility). 8. A metering and administration fee will be charged to each Eligible Renewable Energy Effective ___ _ 'T" / \ DocuSign Envelope ID: B61 BD492-2F9D-4FA3-8566-A7316CBEF1 BA PALO AlTO ClEAN {ClEAN lOCAl ENERGY ACCESSIBLE NOW) PROGRAM EliGIBiliTY RULES AND REQUIREMENTS Resource that participates in the CLEAN Program. See Utilities Rate Schedule E-15 (Electric Service Connection Fees). Effective ___ _ Docu~. il sECuRlb Certificate Of Completion Envelope Number: B61 BD4922F9D4FA38566A 7316CBEF1 BA Status: Completed Subject: Please DocuSign these documents: RESO 9552 -CLEAN Program.pdf, RESO 9552 -CLEAN Program -Attac ... Source Envelope: Document Pages: 5 Certificate Pages: 5 AutoNav: Enabled Envelopeld Stamping: Enabled Record Tracking Status: Original 10/27/2015 3:47:13 PM PT Signer Events Molly Stump Molly.Stump@CityofPaloAito.org City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered ID: Lalo Perez Lalo.Perez@CityofPaloAito.org 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 PT ID: 44fe333a-6a81-4cb 7 -b 7d4-9254 73ac82e3 In Person Signer Events Editor Delivery Events Agent Delivery Events Intermediary Delivery Events Signatures: 3 Initials: 0 Holder: Kim Lunt kimberly.lunt@cityofpaloalto.org Signature Using IP Address: 199.33.32.254 GOocuSigned by: /..t. PM;> B2ADF35ED7C5496 ... Using IP Address: 162.232.168.58 Signed using mobile G DocuSigned by: L1t:2:t! Using IP Address: 199.33.32.254 Signature Status Status Status 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: 10/27/2015 3:50:11 PM PT Viewed: 10/28/2015 5:50:23 PM PT Signed: 10/28/2015 5:50:35 PM PT Sent: 10/28/2015 5:50:36 PM PT Viewed: 10/28/2015 6:02:04 PM PT Signed: 10/28/2015 6:02:36 PM PT Sent: 10/28/2015 6:02:37 PM PT Viewed: 11/13/2015 2:23:38 PM PT Signed: 11/13/2015 2:24:04 PM PT Timestamp Timestamp Timestamp Timestamp