The URL can be used to link to this page

Home My WebLink AboutRESO 9580160308 jb 6053695 Resolution No. 9580 Resolution of the Council of the City of Palo Alto Decreasing the Palo Alto Clean Local Accessible Now Program Contract Rate for Solar Resources to 8.9 ¢/kWh to 9.0 ¢/kWh and Decreasing the Contract Rate for Nonsolar Renewable Energy Resources to 8.1 ¢/kWh to 8.2 ¢/kWh Based on the Reduced Avoided Cost of Local Renewable Energy and Amending Associated Program Rules R E C I T A L S A. On March 5, 2012, the City approved the Palo Alto Clean Local Energy Accessible Now (CLEAN) Program (or feedin tariff). Under the Palo Alto CLEAN Program, participants who build a new solar generating system in Palo Alto may obtain a longterm, fixedprice contract electric utility. B. Council extended the program beyond its original termination date of December 31, 2012 and has periodically reviewed the contract price and program cap. C. On May 27, 2015, Council approved Resolution 9512, which continued Palo Alto CLEAN at the contract price of 16.5 cents per kilowatthour (¢/kWh) for local solar resources, added a 25solar eligible renewable energy resources, establishing contract prices of 9.3 ¢/kWh for a 20year term or 9.4 ¢/kWh for a 25year term for such resources. These contract rates were set to be equal to the then current estimated avoided cost of the energy generated by these resources. The resolution further established separate program caps of 3 megawatts (MW) of generating capacity for both the solar and nonsolar resources. D. In the past few months, the City has received five CLEAN Program project applications for local solar facilities, which together will total 1.26 MW of capacity, or 42% of the 3 MW program cap. E. In April 2015, the City released a Request for Proposals for projects that could deliver renewable energy to the City, and results indicate that the avoided cost of energy generated by renewable resources has dropped since Council adopted a CLEAN Program price for local nonsolar resources in May 2015. F. The City therefore wants to continue the CLEAN program for solar resources, but at a reduced contract price equal to the avoided cost of the solar energy (8.9 ¢/kWh for a 20 year term or 9.0 ¢/kWh for a 25year term) while program parameters (including the separate 3 megawatt (MW) caps applicable to the solar and nonsolar portions of the program). Additionally, the City wants to reduce the contract prices available to local nonsolar eligible renewable resources to 8.1 ¢/kWh for a 20year term or 8.2 ¢/kWh for a 25year term for such resources, which is equal to the current estimated avoided cost of energy generated by these resources. DocuSign Envelope ID: 7EA12D39-B9E7-46CD-826A-9CA77F4576B9 160308 jb 6053695 The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council adopts revised Palo Alto CLEAN Program Eligibility Rules Requirements, set forth in Exhibit 1 attached to this Resolution. SECTION 2. The Council authorizes the City Manager or his designee to sign contracts for the output of one or more solar, or other nonsolar eligible renewable energy resource meeting the CLEAN Program Eligibility Rules and Requirements described in Section 1. // // // // // // // // // // // // // // // // // // DocuSign Envelope ID: 7EA12D39-B9E7-46CD-826A-9CA77F4576B9 160308 jb 6053695 SECTION 3. The Council finds that the adoption of this 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 CLEA operating expenses. Approval of the amended CLEAN Program Eligibility Rules and Requirements attached to the Resolution as Exhibit 1 is not a project under CEQA, and therefore, no environmental review is required. INTRODUCED AND PASSED: March 28, 2016 AYES: BERMAN, BURT, DUBOIS, KNISS, SCHMID, WOLBACH NOES: FILSETH ABSENT: HOLMAN, SCHARFF ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Utilities Director of Administrative Services DocuSign Envelope ID: 7EA12D39-B9E7-46CD-826A-9CA77F4576B9 PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW) PROGRAM ELIGIBILITY RULES AND REQUIREMENTS Effective __________ A. PARTICIPATION ELIGIBILITY: The Palo Alto Clean Local Energy Accessible Now Program (the “CLEAN Program”) is open to participation by any Eligible Renewable 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 from 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 D.5. Solar Energy Resources: Contract Term Contract Price 20 years $0.089 / kWh 25 years $0.090 / kWh Other, NonSolar Eligible Renewable Energy Resources: Contract Term Contract Price 20 years $0.081 / kWh 25 years $0.082 / kWh D. ADDITIONAL RULES AND REQUIREMENTS: 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 (“MW”)(the “Program Capacity”, based on the generating facility’s California Energy Commission rating, CECAC). Generating capacity from nonsolar, eligible renewable energy resources will not be counted towards this 3 MW cap for the solar program. Instead nonsolar, local eligible renewable energy resources will be subject to a 3 MW cap of their own. 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 (SGY7MKR)RZIPSTI-()%(&)'(%'%*& PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW) PROGRAM ELIGIBILITY RULES AND REQUIREMENTS Effective __________ 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) and California Public Resources Code Section 25471, 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 “PreCertification Price”) will be set to $0.076 per kWh (for a 20year contract term) or $0.08 per kWh (for a 25year contract term), based on the estimated levelized cost of brown power over a 20year or 25year 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 will 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, “trueup”, as appropriate, the difference between the Contract Price and the PreCertification 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. To 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 (SGY7MKR)RZIPSTI-()%(&)'(%'%*& PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW) PROGRAM ELIGIBILITY RULES AND REQUIREMENTS Effective __________ Resource that participates in the CLEAN Program. See Utilities Rate Schedule E15 (Electric Service Connection Fees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