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HomeMy WebLinkAbout08-106 - Resolutions RESOLUTION NO. 08-106 A RESOLUTION OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, ADOPTING THE RANCHO CUCAMONGA MUNICIPAL UTILITY'S RENEWABLE PORTFOLIO STANDARD POLICY A. RECITALS. WHEREAS, the City of Rancho Cucamonga, a general law municipal corporation owns and operates Rancho Cucamonga Municipal Utility (RCMU), a publicly owned electrical utility; and WHEREAS, RCMU is obligated under Senate Bill 1078 to adopt a renewable portfolio standard (RPS) program that recognizes the intent of the Legislature to encourage renewable resources, while taking into consideration the effect of the standard on rates, reliability, and financial resources and the goal of environmental improvement; and WHEREAS, RCMU has and will continue to strongly support the goal of integrating renewable resources into RCMU's electric portfolio, while recognizing that existing commitments, market availability and lack of funding may limit RCMU's ability to procure renewable energy at a reasonable cost; and WHEREAS, that the City of Rancho Cucamonga approves the Rancho Cucamonga Municipal Utility Renewable Portfolio Standard Policy and instructs the RCMU Manager and staff to undertake the activities necessary to accomplish the goals contained therein, subject to applicable conditions and limitations. B. RESOLUTION. NOW, THEREFORE, the City Council of the City of Rancho Cucamonga does hereby find and resolve as follows: SECTION 1: The facts set forth in the Recitals, Part A of this Resolution, are true and correct. SECTION 2: The Rancho Cucamonga Municipal Utility's Renewable Portfolio Standard (RPS) shall be as set forth on Attachment 1 hereto and incorporated by reference as if fully set forth herein. SECTION 3: The City Clerk shall certify to the adoption of this Resolution. Please see the following page for formal adoption,certification and signatures Resolution No. 08-106 Page 2 of 4 PASSED, APPROVED, AND ADOPTED this 21" day of May 2008. AYES: Gutierrez, Kurth, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None V V — onald J. Kurth, M.D., Kbyor ATTEST: �61waI Debra J. Wms, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 21"day of May 2008. Executed this 22ntl day of May 2008, at Rancho Cucamonga, California. ,,, , 'q, CXR&." bra J. Ada , CMC, City Clerk Resolution No. 08-106 Page 3 of 4 RANCHO CUCAMONGA MUNICIPAL UTILITY RENEWABLE PORTFOLIO STANDARD POLICY Purpose: This standard represents Rancho Cucamonga Municipal Utility's (RCMU)commitment to renewable resource procurement consistent with the provisions of Senate Bill 1078. SB 1078 requires publicly-owned utilities like Rancho Cucamonga to implement and enforce a local renewable portfolio standard (RPS) that"recognizes the Legislature's intent to encourage renewable resources, while taking into consideration the effect of the standard on rates, reliability, and financial resources and the goal of environmental improvement." Goal: RCMU will increase procurement of electricity from eligible renewable resources until a target portfolio level of 20%is reached by 2010 and a level of 33% is reached by 2020. RCMU will view these targets as a goal, and not as a cap, and RCMU will take advantage of cost-effective opportunities to procure renewable resources that exceed established targets. Qualifying Resources: Electricity produced from the following technologies constitute "eligible"resources: biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells using renewable fuels, hydroelectric generation, digester gas, municipal solid waste, landfill gas, ocean wave, ocean thermal, tidal current, or renewable distributed generation on the customer side of the meter and other sources deemed eligible by the California Energy Commission. In Addition, Qualifying Resources shall include the renewable content associated with non-specific purchases—consistent with the methodology described for use of the SB 1305 Annual Report, and renewable components of sales from other parties (renewable energy certificates (RECs) or"green tickets"). Facilities can be located anywhere in the interconnected transmission system. Timing of Renewable Resource Additions: Renewable resources will be procured to the extent they fulfill unmet needs identified in RCMU's resource procurement plan and RCMU will not uneconomically terminate, abrogate, or otherwise end any existing contract in order to meet the renewable target portion of its energy portfolio. To the extent possible and RCMU will pursue economic conservation, efficiency, and demand management in order to reduce the need for additional power supply. Recognition of Funding Limitations RCMU's ability to meet RPS targets is contingent on RCMU having sufficient funds available to subsidize the above-market costs of renewable energy. In accordance with statutory requirements, RCMU collects public benefits charges from its ratepayers and uses those funds for statutory purposes, including acquisition of renewable resources. Resolution No. 08-106 Page 4 of 4 The availability of sufficient public benefits funding may de facto limit RCMU's ability to meet its RPS renewable energy procurement goals. RCMU will be deemed to have satisfied this RPS to the extent that noncompliance with targets is caused by the unavailability of public benefits charge funds to subsidize purchases of renewable energy. Rate Impact: The addition of renewable energy resources should not increase RCMU electricity rates beyond the levels approved by the Rancho Cucamonga City Council. Transmission and Exchanges: To facilitate the delivery of renewable energy, in order to maximize the use of existing transmission and minimize the need for new transmission, RCMU may implement this policy through exchanges or the sale of related energy of a renewable facility and the retention of the renewable attributes, or through other procurement or sale of RECs. In order to ensure that RCMU does not rely solely on RECs to meet its RPS target, RCMU will,by 2020, meet at least 75% of its RPS target through self-generation or purchase of renewable energy resources for consumption by RCMU customers. Coordination with Other Procurement Requirements: Recognizing that RCMU may now or in the future be subject to other procurement targets or limitations, including without limitation local reliability requirements, resource adequacy requirements, greenhouse gas emissions targets, etc., RCMU will seek to coordinate its implementation of this RPS policy with all other applicable targets and requirements. Funding: As SB 1078 expressly recognizes that RCMU's RPS objectives may be conditioned on availability of financial resources, RCMU will take this factor as well as the impact on rates into consideration in making procurement decisions. To the extent permitted by law, RCMU may use public benefits funds collected from RCMU ratepayers for the purpose of implementing this RPS policy. This RPS Policy was adopted on [date]