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HomeMy WebLinkAbout2024-111 - Resolution RESOLUTION NO. 2024-111 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA SUPERCEDING RESOLUTION NO. 20-129 AND REVISING THE RENEWABLE ENERGY RESOURCES PROCUREMENT PLAN AND ENFORCEMENT PROGRAM FOR THE RANCHO CUCAMONGA MUNICIPAL UTILITY WHEREAS, the City of Rancho Cucamonga is authorized under various provisions of the California Constitution and the general laws of California (including, specifically, Article XI,- Section 9(a) of the California Constitution, Public Utilities Code Section 10004, and Government Code section 39732(a)) to establish, purchase, and operate a public utility to furnish its inhabitants with, among other things, electricity; and WHEREAS, the City of Rancho Cucamonga operates a municipal electric utility ("City"); and WHEREAS, as a municipal electric utility, the City is .generally subject to the legislative and regulatory requirements applicable to local publicly owned electric utilities ("POUs"); and WHEREAS, the State of California passed Senate Bill 2 (1st Extraordinary Session) ("SBX1-2"), effective as of December 10, 2011, requiring POUs, including the City, to adopt and implement, among other things, a renewable energy resources enforcement program and procurement plan that requires the City to procure a minimum quantity of eligible renewable energy resources over certain periods; subject to cost limitation and flexible compliance options as adopted by the Rancho Cucamonga City Council, as the governing board of the City; and WHEREAS, the California Energy Commission ("CEC") adopted regulations specifying procedures for the enforcement of the requirements of SBX1-2 on June 12, 2013, and which became effective on October 1, 2013; and WHEREAS, on October 7, 2015, Governor Brown signed the Clean Energy and Pollution Reduction Act of 2015 (Senate Bill 350 (De Leon) ("SB 350")), with an effective date of January 1, 2016; and WHEREAS, on September 10, 2018, Governor Brown signed Senate Bill 100 (De Leon) ("SB 100"), with an effective date of January 1, 2019; and WHEREAS, SBX1-2, SB 350, and SB 100 required the Rancho Cucamonga City Council, as the governing board of the City, to ensure that the amount of eligible renewable energy resources to be procured by the City for the period from January 1, 2011 to December 31, 2013 is equal to an average of 20 percent of retail sales; and that the City makes reasonable progress to ensure that the procurement of eligible renewable energy resources achieves 25 percent of retail sales by December 31, 2016, and 33% of retail sales by December 31, 2020, 44 percent by December 31, 2024, 52 percent by December 31, 2027, and 60 percent by December 31, 2030; and WHEREAS, Public Utilities Code § 399.30(a) requires California's POUs to adopt a Renewable Energy Resources Procurement Plan ("RPS Procurement Plan"), and further, Public Resolution No. 2024-111 — Page 1 of 4 Utilities Code § 399.30(e) requires POUs to adopt and implement a Renewable Energy Resources Enforcement Program ("RPS Enforcement Program") to enforce the implementation of a POU's RPS Procurement Plan; and WHEREAS, Public Utilities Code § 399.30(d)(2)(B) allows the Rancho Cucamonga City Council to adopt cost limitation measures permitting the City to limit RPS procurement requirements at a level that prevents disproportionate rate impacts to the City's ratepayers. WHEREAS, Public Utilities Code § 399.30(d)(2)(A) allows the Rancho Cucamonga City Council to adopt measures permitting the City to delay timely compliance with the RPS procurement requirements if any of the following conditions exist 1) transmission constraints 2) permitting, interconnection, or other circumstances 3) unanticipated curtailment 4) transportation electrification; and WHEREAS, in accordance with Public Utilities Code § 399.30(e), the City Council, as the governing board of the City, adopted Resolution No. 11-183 on December 21, 2011, Resolution No. 13-199 on November 20, 2013 and Resolution No. 20-129 on December 2, 2020 adopting and establishing various updates to its RPS Procurement Plan, which established compliance periods, adopted RPS procurement targets, specified portfolio balance requirements consistent with Public Utilities Code § 399.16, described the City's existing and planned procurement activities, forecasted the City's retail sales and RPS obligations, adopted rules for excess procurement, and adopted a cost limitation methodology and cost limitation amount and directed the City Manager or his designee to develop and present to the City Council an RPS Procurement Plan; and WHEREAS, City staff has prepared an RPS Procurement Plan for the fourth compliance period (2021-2024) updating the forecasted retail sales and RPS procurement requirements, providing an updated description of the City's existing and planned RPS procurement activities, adopting new procurement targets for the fifth and sixth compliance periods consistent with SB 350 and SB 100, and revising the information and methodology used for establishing a cost limitation for the fourth compliance period and beyond; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City's Renewable Energy Resource Procurement Plan, Compliance Period 4 (2021-2024) to Compliance Period 6 (2028-2030), which is attached hereto and incorporated herein, is hereby approved and adopted. SECTION 2. As authorized in SB 2 1-X and SB 100, the following alternative compliance measures are hereby approved and adopted: i. Delay of Timely Compliance rules are approved and adopted as described in Section 9 of the RPS Plan. ii. A cost limitation for procurement of expenditures by the City is hereby approved and adopted as described in Section 10 of the RPS Plan. SECTION 3. The City Manager or his/her duly authorized designee has developed and presented for City Council approval a Renewable Energy Resources Procurement Plan, Resolution No. 2024-111 — Page 2 of 4 including cost limitation and other criteria's consistent with the requirements of the relevant Public Utilities Code. SECTION 4. Except for matters specifically reserved for action by the City Council, as governing board of the City, the City Manager or his/her duly authorized designee is authorized and directed to do and perform all acts required in the Renewable Energy Resource Procurement Plan and to periodically provide any updates to the Rancho Cucamonga City Council. SECTION 5. This resolution shall take effect immediately upon its adoption. Resolution No. 2024-111 — Page 3 of 4 PASSED, APPROVED, and ADOPTED this 18th day of December, 2024. 0 L. ftennis Michael, Mayor ATTEST: ev ity Clerk STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF RANCHO CUCAMONGA ) I, Kim Sevy, City Clerk of the City of Rancho Cucamonga, do hereby certify that the foregoing Resolution was duly passed, approved, and adopted by the City Council of the City of Rancho Cucamonga, at a Regular Meeting of said Council held on the 18th day of December, 2024. AYES: Hutchison, Kennedy, Michael, Scott, Stickler NOES: None ABSENT: None ABSTAINED: None Executed this 19th day of December, 2024, at Rancho Cucamonga, California. 4GSevy06iy Clerk Resolution No. 2024-111 — Page 4 of 4