HomeMy WebLinkAboutRESO 9929
10292020AB 1
Resolution No. 9929
Resolution of the Council of the City of Palo Alto Approving the 2020
Renewables Portfolio Standard Procurement Plan and 2020
Renewables Portfolio Standard Enforcement Program
R E C I T A L S
A. In September 2018, Governor Brown signed into law Senate Bill 100, the 100
Percent Clean Energy Act, which raised the amounts of renewable energy that electric utilities
are required to procure under the California Renewables Portfolio Standard (RPS) Program to
60% by 2030, and established a policy that 100% of the state’s electricity supply should come
from zero-carbon resources by 2045.
B. Under the California RPS Program, the City must adopt a RPS Procurement Plan
to conform to state law, and must provide notice to the public and California Energy
Commission (CEC) regarding any proposed modifications to its RPS Procurement Plan.
C. To carry out the California RPS Program, the CEC adopted regulations specifying
procedures for enforcement of the Renewables Portfolio Standards for publicly owned utilities
such as the City of Palo Alto Utilities department (CPAU), entitled "Enforcement Procedures for
the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities" (CEC RPS
Regulations, effective April 12, 2016).
D. The City of Palo Alto first adopted a RPS Procurement Plan on December 12,
2011 (Resolution 9215) and subsequently updated it on November 12, 2013 (Resolution 9381)
and December 3, 2018 (Resolution 9802) to align with updates to the California RPS Program
law set forth in Senate Bill 350 (2015).
E. The City of Palo Alto first adopted a RPS Enforcement Program on December 12,
2011 (Resolution 9214) and subsequently updated it on December 3, 2018 (Resolution 9802) to
align with Senate Bill 350.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the 2020 Renewables Portfolio Standard
Procurement Plan (Exhibit A), to align with Senate Bill 100.
SECTION 2. The Council hereby approves the 2020 Renewables Portfolio Standard
Enforcement Program (Exhibit B), to align with Senate Bill 100.
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SECTION 3. The Council finds that the adoption of this resolution approving the 2020
RPS Procurement Plan and 2020 RPS Enforcement Program is not a project subject to California
Environmental Quality Act (CEQA) review because adoption of this resolution is an
administrative government activity that will not result in any direct or indirect physical change
to the environment as a result (CEQA Guidelines section 15378(b)(5)).
INTRODUCED AND PASSED: December 7, 2020
AYES: DUBOIS, FILSETH, FINE, KNISS, KOU, TANAKA
NOES:
ABSENT: CORMACK
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
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PALO ALTO’S RPS PROCUREMENT PLAN
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CITY OF PALO ALTO’S
RENEWABLE PORTFOLIO STANDARD
PROCUREMENT PLAN
Version 4
December 2020
REVISION HISTORY
Version Date Resolution Description
4 12/07/20 Updated to reflect Senate Bill 100 (2018) requirements
3 12/03/18 9802 Updated to reflect Senate Bill 350 (2015) requirements
2 11/12/13 9381 Updated to reflect adoption of final CEC regulations, effective
10/1/13, permitting the City to adopt rules for Excess Procurement,
Compliance Delay, Cost Limitations, Portfolio Balancing Reductions,
and Historic Carryover. Other non-substantive clean up.
1 12/12/11 9215 Original version per Senate Bill X1 2 (2011) requirements
Exhibit A to Attachment A
CIT 'Y OF
PALO
A 0
UTILITIES
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TABLE OF CONTENTS
INTRODUCTION ............................................................................................................................................................. 3
A. PURPOSE OF THE PLAN (PUC § 399.30(a)) ............................................................................................................ 4
B. PLAN ELEMENTS .................................................................................................................................................... 4
1. Compliance Period Definitions ......................................................................................................................... 4
2. Procurement Requirements ............................................................................................................................. 4
3. Portfolio Content Categories (PCC) .................................................................................................................. 5
4. Portfolio Balancing Requirements .................................................................................................................... 6
5. Long-Term Contract Requirement .................................................................................................................... 6
6. Reasonable Progress ........................................................................................................................................ 6
C. OPTIONAL COMPLIANCE MEASURES .................................................................................................................... 6
1. Excess Procurement (PUC §399.13(a)(4)(B)) .................................................................................................... 6
2. Waiver of Timely Compliance (§ 399.30(d)(2), § 399.15(b)(5)) ........................................................................ 7
3. Cost Limitations for Expenditures (PUC § 399.30(d), § 399.15(c)) ................................................................... 9
4. Portfolio Balance Requirement Reduction (PUC § 399.16(e)) ........................................................................ 10
5. Historic Carryover ........................................................................................................................................... 11
6. Large Hydro Exemption (PUC § 399.30(k)) ..................................................................................................... 12
D. ADDITIONAL PLAN COMPONENTS ...................................................................................................................... 13
1. Exclusive Control (PUC § 399.30(m)) .............................................................................................................. 13
2. Deliberations & Reporting (PUC § 399.30(e), § 399.30(f)) ............................................................................. 13
3. Annual Review ................................................................................................................................................ 14
4. Plan Modifications/Amendments ................................................................................................................... 14
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INTRODUCTION
This document presents the City of Palo Alto Utilities’ (CPAU) Renewables Portfolio Standard
Procurement Plan (RPS Procurement Plan), as required for compliance with Senate Bill (SB)
100.1 This legislation, which was signed into law in the 2018 Session of the Legislature,
modified the state’s renewable portfolio standard (RPS) program and set forth RPS
requirements applicable to all load-serving entities in the state. Pursuant to Public Utility Code
§ 399.30(a) and Section 3205 of the California Energy Commission’s (CEC) “Enforcement
Procedures for the Renewables Portfolio Standard for Local Publicly Owned Electric Utilities”2
(RPS Regulations), each POU must adopt and implement a renewable energy resources
procurement plan (RPS Procurement Plan). SB X1 2, signed into law in 2011, directed the CEC to
adopt regulations specifying procedures for enforcement of the RPS for Publicly Owned
Utilities.
This RPS Procurement Plan replaces the RPS Procurement Plan approved by the Palo Alto City
Council (City Council) on December 3, 2018 (Resolution No. 9802, Staff Report No. 9761) and is
consistent with the provisions set forth in the CEC’s RPS Regulations, which have been adopted
by the CEC and approved by the Office of Administrative Law, with an effective date of April 12,
2016.3
CPAU’s RPS Procurement Plan consists of:
A. Purpose of the plan;
B. Plan Elements;
C. Measures that address each of the optional provisions set forth in §399.30(d) and RPS
Regulations Section 3206; and
D. Additional provisions.
Where appropriate, this RPS Procurement Plan includes section citations to the Public Utilities
Code (PUC) and the CEC’s RPS Regulations.
1 SB 100 (2018) was signed by California’s Governor on September 10, 2018, and made significant revisions to
Public Utilities Code sections 399.11-399.32, the California Renewables Portfolio Standard Program.
2 California Code of Regulations, Title 20, Division 2, Chapter 13, Sections 3200 - 3208 and Title 20, Division 2,
Chapter 2, Section 1240.
3 At the time of writing for this edition of CPAU’s RPS Procurement Plan, the RPS Regulations had not been
updated with SB 100 and subsequent legislative requirements. Where both Public Utility Codes and RPS Regulations are cited but the RPS Regulations are outdated, CPAU’s RPS Procurement Plan will reflect the more
current Public Utility Codes.
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A. PURPOSE OF THE PLAN (PUC § 399.30(A))
In order to fulfill unmet long-term generation resource needs, the City Council adopts and
implements this RPS Procurement Plan. This Plan requires the utility to procure a minimum
quantity of electricity products from eligible renewable energy resources, including renewable
energy credits (RECs), as a specified percentage of CPAU’s total kilowatt-hours of electrical
energy sold to its retail end-use customers, during each compliance period, to achieve the
targets specified in SB 100 and the RPS Regulations. This RPS Procurement Plan establishes the
framework for achieving the minimum requirements under SB 100 and the RPS Regulations,
and does not include or preclude actions taken by CPAU to achieve the City Council’s goals.
B. PLAN ELEMENTS
CPAU will comply with the requirements for renewables procurement targets set forth in SB
100 and the applicable enforcement procedures codified in the CEC’s RPS Regulations, including
implementation of the following Plan Elements:
1. Compliance Period Definitions
CPAU has adopted the relevant compliance period definitions identified in PUC §
399.30(b).
2. Procurement Requirements
CPAU shall meet or exceed the following procurement targets of renewable energy
resources for each compliance period per PUC §§ 399.30(c)(1) and (2) and the CEC’s RPS
Regulations:
Compliance Period 1 Target ≥ 20% × (CPAU Retail Sales2011_+ CPAU Retail Sales2012 + CPAU
Retail Sales2013).
Compliance Period 2 Target ≥ 20% × CPAU Retail Sales2014 + 20% × CPAU Retail Sales2015 +
25% × CPAU Retail Sales2016
Compliance Period 3 Target ≥ 27% × CPAU Retail Sales2017 + 29% × CPAU Retail Sales2018 +
31% × CPAU Retail Sales2019 + 33% × CPAU Retail Sales2020
Compliance Period 4 Target ≥ 35.75% × CPAU Retail Sales2021 + 38.5% × CPAU Retail
Sales2022 + 41.25% × CPAU Retail Sales2023 + 44% × CPAU
Retail Sales2024
Compliance Period 5 Target ≥ 46% × CPAU Retail Sales2025 + 50% × CPAU Retail Sales2026 +
52% × CPAU Retail Sales2027
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Compliance Period 6 Target ≥ 54.67% × CPAU Retail Sales2028 + 57.33% × CPAU Retail
Sales2029 + 60% × CPAU Retail Sales2030
For every subsequent three-year Compliance Period (e.g., 2031-2033), CPAU shall procure
renewable energy resources equivalent to at least sixty percent (60%) of retail kilowatt-
hour sales during that Compliance Period.
The procurement targets listed for each individual year above are soft targets. That is, by
the end of each Compliance Period, CPAU’s RPS total for the period has to equal the sum of
the annual targets, but the targets do not have to be achieved in each individual year.
3. Portfolio Content Categories (PCC)
CPAU adopts the definitions for qualifying electric products and Portfolio Content
Categories (PCC) per Sections 3202 and 3203 of the CEC’s RPS Regulations.
a. How CPAU Plans to Achieve its RPS Requirements per Section 3205(a)(1) of the
CEC’s RPS Regulations
CPAU’s RPS portfolio will include grandfathered contracts (commonly referred to
as “PCC 0”), which are executed prior to June 1, 2010, and PCC 1 eligible
resources, which are typically directly or dynamically connected to a California
balancing authority. CPAU’s RPS portfolio may also include PCC 2 eligible
resources that are scheduled into a California balancing authority, and PCC 3
eligible resources, which are typically unbundled renewable energy credits
(RECs). PCC 0 resources are defined in Section 3202(a)(2) of the CEC’s RPS
Regulations, while PCC 1, 2, and 3 resources are defined in Section 3203 of the
CEC’s RPS Regulations. CPAU shall determine the category to which each
procured resource belongs.
In its 2011 through 2017 RPS Compliance Reports, CPAU listed a total of five PCC
0 contracts. All five of these contracts extend through the end of Compliance
Period 3, and all have achieved commercial operation. On their own, these PCC
0 contracts were sufficient to enable CPAU to meet its Compliance Period 1 and
2 RPS targets.
CPAU has currently executed six contracts for PCC 1 resources. The first five of
these, executed between 2012 and 2014, have all commenced operation,
between 2014 and 2016. The sixth PCC 1 contract, executed in 2016, is
contracted to commence operation in 2021 and begin energy deliveries to CPAU
in 2023. With these six PCC 1 resources, along with its five PCC 0 contracts, CPAU
forecasts that its renewable energy supplies will be well in excess of its
procurement requirements through at least Compliance Period 6.
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4. Portfolio Balancing Requirements
In satisfying the procurement requirements listed in section B.3 of this RPS Procurement
Plan, CPAU shall also satisfy the legally-required portfolio balancing requirements
specifying the limits on quantities for PCC 1 and PCC 3 per PUC § 399.30(c)(3), §§
399.16(c)(1) and (2). CPAU shall apply the formulae specified in Section 3204(c) of the
CEC’s RPS Regulations to determine these portfolio balance requirements. Renewable
energy procured from PCC 0 contracts shall be excluded from these portfolio balancing
requirement formulae.
5. Long-Term Contract Requirement
In meeting the RPS procurement requirements identified in section B.3 of this RPS
Procurement Plan, CPAU is subject to long-term contract requirements. Consistent with
Public Resources Code § 399.13(b), CPAU may enter into a combination of long- and
short-term contracts for electricity and associated renewable energy credits. Beginning
January 1, 2021, at least 65 percent of CPAU’s procurement that counts toward the RPS
requirement of each compliance period shall be from its contracts of 10 years or longer
or in its ownership or ownership agreements for eligible renewable energy resources.
6. Reasonable Progress
CPAU shall demonstrate that it is making reasonable progress towards ensuring that it
shall meet its compliance period targets during intervening years per PUC §§
399.30(c)(2).
C. OPTIONAL COMPLIANCE MEASURES
As permitted by Section 3206(a) of the CEC’s RPS Regulations, the City Council hereby adopts
rules permitting the use of each of the following five optional compliance measures included in
the CEC’s RPS Regulations: Excess Procurement, Delay of Timely Compliance, Cost Limitations,
Portfolio Balance Requirement Reduction, and Historic Carryover. The City Council also hereby
adopts rules permitting the use of the Large Hydro Exemption as described in PUC § 399.30(l).
1. Excess Procurement (PUC §399.13(a)(4)(B))
a. Adoption of Excess Procurement Rules
The City Council has elected to adopt rules permitting CPAU to apply excess
procurement in one compliance period to a subsequent compliance period, as
described in Section 3206(a)(1) of the CEC’s RPS Regulations.
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b. Limitations on CPAU’s Use of Excess Procurement
CPAU shall be allowed to apply Excess Procurement from one compliance period
to subsequent compliance periods as long as the following conditions are met:
1. Excess Procurement shall only include generation from January 1, 2011 or
later.
2. Eligible resources must be from Content Category 1 or Grandfathered
Resources to be Excess Procurement. Resources from Content Category 2 or
Content Category 3 will not count towards Excess Procurement.
c. Excess Procurement Calculation
CPAU shall calculate its Excess Procurement according to formulae in section
3206 (a)(1)(D) of the CEC’s RPS Regulations.
d. City Council Review
CPAU’s use of the Excess Procurement to apply towards CPAU’s RPS
procurement target in any compliance period will be reviewed by the City
Council during its annual review as per section D.3 of this RPS Procurement Plan.
2. Waiver of Timely Compliance (§ 399.30(d)(2), § 399.15(b)(5))
a. Adoption of Waiver of Timely Compliance Rules
The City Council has elected to adopt rules permitting it to make a finding that
conditions beyond CPAU’s control exist to delay timely compliance with RPS
procurement requirements, as described in Section 3206(a)(2) of the CEC’s RPS
Regulations.
b. Waiver of Timely Compliance Findings
The City Council may make a finding, based on sufficient evidence presented by
CPAU staff, and as described in this Section C.2, that is limited to one or more of
the following causes of delay, and shall demonstrate that CPAU would have met
its RPS procurement requirements but for the cause of the delay:
(1) Inadequate Transmission
i. There is inadequate transmission capacity to allow for
sufficient electricity to be delivered from CPAU’s proposed eligible
renewable energy resource projects using the current operational
protocols of the California Independent System Operator’s Balancing
Authority Area.
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ii. If the City Council’s delay finding rests on circumstances
related to CPAU’s transmission resources or transmission rights, the City
Council may find that:
a) CPAU has undertaken, in a timely fashion, reasonable
measures under its control and consistent with its obligations
under local, state, and federal laws and regulations, to develop
and construct new transmission lines or upgrades to existing lines
intended to transmit electricity generated by eligible renewable
energy resources, in light of its expectation for cost recovery.
b) CPAU has taken all reasonable operational measures to
maximize cost-effective purchases of electricity from eligible
renewable energy resources in advance of transmission
availability.
(2) Permitting, interconnection, or other factors that delayed procurement or
insufficient supply.
i. Permitting, interconnection, or other circumstances have
delayed procured eligible renewable energy resource projects, or there is
an insufficient supply of eligible renewable energy resources available to
CPAU.
ii. In making its findings relative to the existence of this
condition, the City Council’s deliberations shall include, but not be limited
to the following:
a) Whether CPAU prudently managed portfolio risks,
including, but not limited to, holding solicitations for RPS-eligible
resources with outreach to market participants and relying on a
sufficient number of viable projects;
b) Whether CPAU sought to develop its own eligible
renewable energy resources, transmission to interconnect to
eligible renewable energy resources, or energy storage used to
integrate eligible renewable energy resources.
c) Whether CPAU procured an appropriate minimum
margin of procurement above the minimum procurement level
necessary to comply with the renewables portfolio standard to
compensate for foreseeable delays or insufficient supply;
d) Whether CPAU has taken reasonable measures, under
its control to procure cost-effective distributed generation and
allowable unbundled renewable energy credits;
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e) Whether actions or events beyond CPAU’s control have
adversely impacted timely deliveries of renewable energy
resources including, but not limited to, acts of nature, terrorism,
war, labor difficulty, civil disturbance, or market manipulation;
(3) Unanticipated curtailment of eligible renewable energy resources if the
delay would not result in an increase in greenhouse gas emissions.
(4) Unanticipated increase in retail sales due to transportation
electrification. In making a finding that this condition prevents timely
compliance, the City Council shall consider both of the following:
(i) Whether transportation electrification significantly exceeded forecasts
in CPAU’s service territory based on the best and most recently
available information filed with the State Air Resources Board, the
Energy Commission, or another state agency.
(ii) Whether CPAU took reasonable measures to procure sufficient
resources to account for unanticipated increases in retail sales
due to transportation electrification.
c. Procedures upon Approving Waiver:
In the event of a Waiver of Timely Compliance due to any of the factors set forth
above, CPAU shall implement the following procedures:
(1) Establish additional reporting for intervening years to demonstrate that
reasonable actions under the CPAU’s control are being taken
(§399.15(b)(6)).
(2) Require a demonstration that all reasonable actions within the CPAU’s
control have been taken to ensure compliance in order to grant the
waiver (§ 399.15(b)(7)).
3. Cost Limitations for Expenditures (PUC § 399.30(d), § 399.15(c))
a. Cost Limitations for Expenditures
The City Council has elected to adopt rules for cost limitations on the
procurement expenditures used to comply with CPAU’s procurement
requirements, as described in Section 3206(a)(3) of the CEC’s RPS Regulations.
These cost limitation rules are intended to be consistent with PUC §399.15(c).
b. Considerations in Development of Cost Limitation Rules
In adopting cost limitation rules, the City Council has relied on the following:
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1) This Procurement Plan;
2) Procurement expenditures that approximate the expected cost of
building, owning, and operating eligible renewable energy resources;
3) The potential that some planned resource additions may be delayed or
canceled; and
4) Local and regional economic conditions and the ability of CPAU’s
customers to afford produced or procured energy products. These
economic conditions may include but are not limited to unemployment,
wages, cost of living expenses, the housing market, and cost burden of
other utility rates on the same customers. The City Council may also
consider cost disparities between customer classes within Palo Alto, and
between Palo Alto customers and other Publicly Owned Utility and
Investor Owned Utility customers in the region.
c. Cost Limitations
Since 2002, the City of Palo Alto’s RPS policy has required that CPAU pursue a
target level of renewable purchases while “[e]nsuring that the retail rate impact
for renewable purchases does not exceed 0.5 ¢/kWh on average,” i.e., the
cumulative incremental cost of all renewable resources over and above the
estimated cost of an equivalent volume and shape of alternative non-RPS
resources shall not cause a retail rate impact in excess of 0.5 ¢/kWh on average.
This limit was first established by the City Council in October 2002 based on
public input, and the goal of balancing resource reliability and cost
considerations in the consideration of investment in renewable and energy
efficiency resources.
d. Actions to be Taken if Costs Exceed Adopted Cost Limitation
If costs are anticipated to exceed the cost limitations set by the City Council, staff
will present proposals to the City of Palo Alto’s Utilities Advisory Commission to
either reduce the RPS requirements or increase the cost limitation. Staff and the
Commission’s recommendations will then be taken to the City Council for action.
4. Portfolio Balance Requirement Reduction (PUC § 399.16(e))
a. Adoption of Portfolio Balance Requirement Reduction Rules
The City Council has elected to adopt rules that allow for the reduction of the
portfolio balance requirement for PCC 1 for a specific compliance period,
consistent with PUC §399.16(e), as described in Section 3206(a)(4) of the CEC’s
RPS Regulations.
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b. Portfolio Balance Requirement Reduction Rules
CPAU may reduce the portfolio balance requirement for PCC1 for a specific
compliance period, consistent with PUC §399.16 (e) and the following:
1. The need to reduce the portfolio balance requirements for PCC 1 must
have resulted because of conditions beyond CPAU’s control, as provided
in Section 3206(a)(2) of the CEC’s RPS Regulations.
2. CPAU may not reduce its portfolio balance requirement for PCC 1 below
65 percent for any compliance period after December 31, 2016.
3. Any reduction in portfolio balance requirements for PCC 1 must be
adopted at a publicly noticed meeting, providing at least 10 calendar
days’ notice to the CEC, and include an updated renewable energy
resources procurement plan detailing the portfolio balance requirement
changes.
5. Historic Carryover
a. Adoption of Historic Carryover Rules
The City Council has elected to adopt rules to permit its use of Historic
Carryover, as defined in Section 3206(a)(5) of the RPS Regulations, to meet its
RPS procurement targets. Current calculations indicate that CPAU has Historic
Carryover due to CPAU’s early investment in renewable energy resources.
b. Historic Carryover Procurement Criteria
CPAU’s use of Historic Carryover is subject to section 3206 (a)(5) of the CEC’s RPS
Regulations, including the following:
1) Procurement generated before January 1, 2011 may be applied to
CPAU’s RPS procurement target for the compliance period ending
December 31, 2013, or for any subsequent compliance period; and
2) The procurement must also meet the criteria of Section 3202 (a)(2) of
the CEC’s RPS Regulations; and
3) The procurement must be in excess of the sum of the 2004-2010
annual procurement targets defined in Section 3206(a)(5)(D) of the
CEC’s RPS Regulations; and
4) The procurement cannot have been applied to the RPS of another
state or to a voluntary claim.
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5) The Historic Carryover must be procured pursuant to a contract or
ownership agreement executed before June 1, 2010.
6) Both the Historic Carryover and the procurement applied to CPAU’s
annual procurement targets must be from eligible renewable energy
resources that were RPS-eligible under the rules in place for retail
sellers at the time of execution of the contract or ownership
agreement, except that the generation from such resources need not
be tracked in the Western Renewable Energy Generation Information
System.
c. Historic Carryover Formula
CPAU will calculate its Historic Carryover according to formulae in Section 3206
(a)(5)(C) and (D) of the CEC’s RPS Regulations.
d. Historic Carryover Claims
In conformance with the CEC’s RPS Regulations, CPAU submitted a Historic
Carryover claim (of 368,733 MWh) to the CEC on January 6, 2014. The Historic
Carryover submittal, which was subsequently accepted by the CEC, included
baseline calculations, annual procurement target calculations, and other
pertinent data.
e. Council Review
CPAU’s use of the Historic Carryover to apply towards CPAU’s RPS procurement
target in any compliance period will be reviewed by the City Council during its
annual review as per section D.3 of this RPS Procurement Plan.
6. Large Hydro Exemption (PUC § 399.30(k))
a. Adoption of Large Hydro Exemption Rules
The City Council has elected to adopt rules permitting CPAU to reduce its annual
RPS procurement requirements, as described in PUC §399.30(k).
b. Limitations on CPAU’s Use of the Large Hydro Exemption
CPAU shall be allowed to invoke the Large Hydro Exemption as long as the
following conditions are met:
1. During a year within a compliance period, CPAU shall have received greater
than 40% of its retail sales from large hydroelectric generation, which is
defined as electricity generated from a hydroelectric facility that is not an
eligible renewable energy resource.
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2. The large hydroelectric generation is produced at a facility owned by the
federal government as a part of the federal Central Valley Project or a joint
powers agency.
3. Only large hydroelectric generation that is procured under an existing
agreement effective as of January 1, 2015, or an extension or renewal of that
agreement, shall counted in the determination that CPAU has received more
than 40 percent of its retail sales from large hydroelectric generation in any
year.
c. Large Hydro Exemption Calculation
CPAU’s annual RPS procurement target for a year in which the Large Hydro
Exemption is invoked shall equal the lesser of (a) the portion of CPAU’s retail
sales unsatisfied by its large hydroelectric generation or (b) the annual RPS
procurement soft target for that year, as listed in section B.2 of this RPS
Procurement Plan. CPAU’s RPS procurement requirement for the compliance
period that includes said year shall be adjusted to reflect any reduction in CPAU’s
annual RPS procurement target pursuant to this section.
d. City Council Review
CPAU’s use of the Large Hydro Exemption to reduce its annual RPS procurement
target in any compliance period will be reviewed by the City Council during its
annual review as per section D.3 of this RPS Procurement Plan.
D. ADDITIONAL PLAN COMPONENTS
1. Exclusive Control (PUC § 399.30(m))
In all matters regarding compliance with the RPS Procurement Plan, CPAU shall retain exclusive
control and discretion over the following:
a. The mix of eligible renewable energy resources procured by CPAU and those
additional generation resources procured by CPAU for purposes of ensuring
resource adequacy and reliability.
b. The reasonable costs incurred by CPAU for eligible renewable energy resources
owned by it.
2. Deliberations & Reporting (PUC § 399.30(e), § 399.30(f))
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PALO ALTO’S RPS PROCUREMENT PLAN
Effective 12-07-20 Page 14 of 15
a. Deliberations on Procurement Plan (§399.30(f), Section 3205(a)(3) of the CEC RPS
Regulations):
(1) Public Notice: Annually, CPAU shall post notice of meetings if the CPA
Council will deliberate in public regarding this RPS Procurement Plan.
(2) Notice to the California Energy Commission (CEC): Contemporaneous
with the posting of a notice for such a meeting, CPAU shall notify the CEC
of the date, time and location of the meeting in order to enable the CEC
to post the information on its Internet website.
(3) Documents and Materials Related to Procurement Status and Plans:
When CPAU provides information to the CPA Council related to its
renewable energy resources procurement status and future plans, for the
City Council’s consideration at a noticed public meeting, CPAU shall make
that information available to the public and shall provide the CEC with an
electronic copy of the documents for posting on the CEC’s website.
b. Compliance Reporting (Section 3207 of the CEC RPS Regulations)
(1) CPAU shall submit an annual report to the CEC by July 1. The annual
reports shall include the information specified in Section 3207(c) of the
CEC RPS Regulations.
(2) By July 1, 2021; July 1, 2025; July 1, 2028; July 1, 2031; and by July 1 of
every third year thereafter, CPAU shall submit to the CEC a compliance
report that addresses the annual reporting requirements of the previous
section, and information for the preceding compliance period as specified
in Section 3207(d) of the CEC RPS Regulations.
3. Annual Review
CPAU’s RPS Procurement Plan shall be reviewed annually by the City Council in accordance with
CPAU’s RPS Enforcement Program.
4. Plan Modifications/Amendments
This RPS Procurement Plan may be modified or amended by an affirmative vote of the City
Council during a public meeting. Any City Council action to modify or amend the plan must be
publicly noticed in accordance with Section D.2.a.
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PALO ALTO’S RPS PROCUREMENT PLAN
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Effective Date: This plan shall be effective on December 7, 2020.
APPROVED AND ADOPTED this _________ day of __________________, 2020.
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PALO ALTO’S RPS ENFORCEMENT PROGRAM
Effective 1-1-12 Updated 12-07-20 Page 1 of 4
CITY OF PALO ALTO’s
RENEWABLE PORTFOLIO STANDARD
ENFORCEMENT PROGRAM
Version 3
December 2020
REVISION HISTORY
Version Date Resolution Description
3 12/07/20 Updated to reflect Senate Bill 100 (2018) requirements
2 12/03/18 9802 Updated to reflect Senate Bill 350 (2015) requirements
1 12/12/11 9215 Original version per Senate Bill X1 2 (2011) requirements
Exhibit B to Attachment A
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PALO ALTO’S RPS ENFORCEMENT PROGRAM
Effective 1-1-12 Updated 12-07-20 Page 2 of 4
1. The City shall have a program for the enforcement of a Renewables Portfolio Standard
(RPS) program, which shall include all of the provisions set forth herein and shall be
known as the City’s RPS Enforcement Program.
2. The RPS Enforcement Program shall be effective on January 1, 2012.
3. Not less than ten (10) days advance notice shall be given to the public before any
meeting is held to make a substantive change to the RPS Enforcement Program.
4. Annually, the City Manager or their designee, the Utilities Director, shall cause to be
reviewed the City’s RPS Procurement Plan to determine compliance with the RPS
Enforcement Program.
5. Annual review of the RPS Procurement Plan shall include consideration of each of the
following elements:
A. By December 31, 2017, December 31, 2018, and December 31, 2019:
1. Ensure that the City is making reasonable progress toward meeting the
December 31, 2020 compliance obligation of 33% renewable resources
electricity, consistent with the RPS Procurement Plan.
B. December 31, 2020 (end of Compliance Period 3),
1. Verify that that the City procured sufficient electricity products to meet
the sum of 27% of its 2017, 29% of its 2018, 31% of its 2019, and 33% of
its 2020 retail sales with eligible renewable resources from the
specified Content Categories, consistent with the RPS Procurement
Plan.
C. By December 31, 2021, December 31, 2022, and December 31, 2023:
1. Ensure that the City is making reasonable progress toward meeting the
December 31, 2024 compliance obligation of 44% renewable resources
electricity, consistent with the RPS Procurement Plan.
D. December 31, 2024 (end of Compliance Period 4),
1. Verify that that the City procured sufficient electricity products to meet
the sum of 35.75% of its 2021, 38.5% of its 2022, 41.25% of its 2023,
and 44% of its 2024 retail sales with eligible renewable resources from
the specified Content Categories, consistent with the RPS Procurement
Plan.
E. By December 31, 2025 and December 31, 2026:
1. Ensure that the City is making reasonable progress toward meeting the
December 31, 2027 compliance obligation of 52% renewable resources
electricity, consistent with the RPS Procurement Plan.
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PALO ALTO’S RPS ENFORCEMENT PROGRAM
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F. December 31, 2027 (end of Compliance Period 5),
1. Verify that that the City procured sufficient electricity products to meet
the sum of 46% of its 2025, 50% of its 2026, and 52% of its 2027 retail
sales with eligible renewable resources from the specified Content
Categories, consistent with the RPS Procurement Plan.
G. By December 31, 2028 and December 31, 2029:
1. Ensure that the City is making reasonable progress toward meeting the
December 31, 2030 compliance obligation of 60% renewable resources
electricity, consistent with the RPS Procurement Plan.
H. December 31, 2030 (end of Compliance Period 6),
1. Verify that that the City procured sufficient electricity products to meet
the sum of 54.67% of its 2028, 57.33% of its 2029, and 60% of its 2030
retail sales with eligible renewable resources from the specified
Content Categories, consistent with the RPS Procurement Plan.
I. December 31, 2031 and annually thereafter,
1. Ensure that the City is making reasonable progress toward meeting its
compliance obligation of 60% renewable resources for each three-year
compliance period beyond 2030, consistent with the RPS Procurement
Plan.
J. December 31, 2033 (and every three years thereafter),
1. Verify that that the City procured sufficient electricity products to meet
60% of its retail sales for that three-year compliance period (e.g., 2031-
2033) with eligible renewable resources from the specified Content
Categories, consistent with the RPS Procurement Plan.
K. If targets in any compliance period are not met, the City must:
1. Review the applicability of applying Excess Procurement from a
previous Compliance Period or Historic Carryover consistent with the
provisions of the RPS Procurement Plan;
2. Ensure that any Waiver of Timely Compliance was compliant with the
provisions in the RPS Procurement Plan;
3. Ensure that any Portfolio Balance Requirement Reduction was
compliant with the provisions in the RPS Procurement Plan; and
4. Review applicability and appropriateness of excusing performance
based on the Cost Limitations on Expenditures or the Large Hydro
Exemption provisions of the RPS Procurement Plan.
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PALO ALTO’S RPS ENFORCEMENT PROGRAM
Effective 1-1-12 Updated 12-07-20 Page 4 of 4
6. If it is determined that the City has failed to comply with the provisions of its RPS
Procurement Plan, the City Council shall take steps to correct any untimely compliance,
including requiring the City Manager or their designee, the Utilities Director, to:
A. Review the City’s RPS Procurement Plan to determine what changes, if any,
are necessary to ensure compliance in the next Compliance Period;
B. Report quarterly to the City Council regarding the progress being made
toward meeting the compliance obligation for the next Compliance Period;
and
C. Report to the City Council regarding the status of meeting subsequent
compliance targets, and all steps being taken to ensure that the obligation is
timely met.
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Envelope Id: DDED166A693F4914BCF3828850C75139 Status: Completed
Subject: Please DocuSign: RESO 9929 Renewables Portfolio Standard Procurement Plan and 2020 Renewables P...
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250 Hamilton Ave
Palo Alto , CA 94301
Danielle.Kang@cityofpaloalto.org
IP Address: 199.33.32.254
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12/9/2020 3:11:14 PM
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Danielle.Kang@cityofpaloalto.org
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Aylin Bilir
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Deputy City Attorney
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Kiely Nose
Kiely.Nose@CityofPaloAlto.org
Director, Administrative Services/CFO
City of Palo Alto
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Dean Batchelor
Dean.Batchelor@CityofPaloAlto.org
Director of Utilities
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Ed Shikada
Ed.Shikada@CityofPaloAlto.org
Ed Shikada, City Manager
City of Palo Alto
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Adrian Fine
Adrian.Fine@CityofPaloAlto.org
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Beth Minor
beth.minor@cityofpaloalto.org
City Clerk
City of Palo Alto
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