HomeMy WebLinkAbout11-183 - Resolutions RESOLUTION NO. 11-183
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA ESTABLISHING A RENEWABLE
ENERGY RESOURCES PROCUREMENT PLAN AND
ENFORCEMENT PROGRAM PURSUANT TO CALIFORNIA
SENATE BILL X7-2
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) ('56X1-2"), 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; and
WHEREAS, SBX1-2 requires 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, and in all subsequent
years; and
WHEREAS, SBX1-2 authorizes the Rancho Cucamonga City Council, as the
governing board of the City, to adopt cost limitations for procurement expenditures of renewable
energy resources at levels that avoid disproportionate rate impacts; and
WHEREAS, SBX1-2 establishes conditions that allow for the delay of timely
compliance under certain limited circumstances, including lack of availability of eligible
renewable energy resources; and
WHEREAS, the Rancho Cucamonga City Council, as the governing board of the
City; is required under SBX1-2 to adopt a program for the enforcement of the City's obligations
under SBX1-2 on or before January 1, 2012, and hold a publicly noticed meeting offering all
interested parties an opportunity to comment; and
WHEREAS, the California Energy Commission ("CEC") is directed to adopt
regulations specifying procedures applicable to POUs for the enforcement of the requirements
of SBX1-2, and the CEC's finding of a failure of the City to comply with SBX1-2 may result in
penalties to be assessed by the California Air Resources Board;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO
CUCAMONGA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. A program for the enforcement of the requirements established
under SBX1-2 is hereby adopted as set forth in Attachment A, which is attached hereto and
incorporated herein ("RPS Enforcement Program").
SECTION 2. The City Manager or his/her duly authorized designee has
developed and presented for City Council approval a Renewable Energy Resources
Procurement Plan, as further described in the RPS Enforcement Program.
SECTION 3. The City Manager or his/her duly authorized designee shall
develop and present for City Council approval a cost limitation and availability criteria consistent
with the requirements of SBX1-2, as further described in the RPS Enforcement Program.
SECTION 4. Except for matters specifically reserved under SBX1-2 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 RPS Enforcement
Program to fulfill obligations pertaining to the City under SBX1-2.
SECTION 5. This resolution shall take effect immediately upon its adoption.
Please see the following page
for formal adoption,certification and signatures
Resolution No. 11-183 - Page 2 of 6
PASSED, APPROVED, AND ADOPTED this 215` day of December 2011.
AYES: Alexander, Buquet, Michael, Spagnolo, Williams
NOES: None
ABSENT: None
ABSTAINED: None
L. Dennis Michael, Mayor
ATTEST:
/
L-4
Janice C. Reynolds, City Clerk
I, JANICE C. REYNOLDS, 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 215` day of December 2011.
Executed this 22otl day of December 2011, at Rancho Cucamonga, California.
Janice C. Reynolds, City Clerk
Resolution No. 11-183 - Page 3 of 6
ATTACHMENT A
RENEWABLE ENERGY RESOURCES ENFORCEMENT PROGRAM
This Renewable Energy Resources Enforcement Program (RPS Enforcement
Program) shall apply to the City of Rancho Cucamonga, operating through its municipal electric
utility (City).
Section 1: Definitions
The definitions set forth in Public Resources Code (PRC) § 25741 and Public Utilities Code
(PUC) § 399.12 are incorporated herein.
The following definitions shall also apply to this RPS Enforcement Program:
Renewable Energy Resources Procurement Plan: The plan adopted by the City
Council pursuant to PUC § 399.30, as further described in Section 10.
Energy Commission: The State Energy Resources Conservation and
Development Commission.
CPUC: The California Public Utilities Commission.
Section 2: Compliance Periods
The City Council adopts the following compliance periods as required by PUC § 399.30(b):
Compliance Period One: January 1, 2011, through December 31, 2013
Compliance Period Two: January 1, 2014, through December 31, 2016
Compliance Period Three: January 1, 2017, through December 31, 2020
Section 3: Procurement Targets
The City Council adopts the following RPS-eligible (electricity products from eligible renewable
energy resources, including renewable energy credits (RECs)) procurement goals as a
minimum percentage of retail sales, pursuant to PUC § 399.30(c)(1)-(2):
Compliance Period One:
• An average of 20% RPS-eligible resource procurement for the period starting with
the later of January 1, 2011, or the effective date of PUC § 399.30, through
December 31, 2013.
Compliance Period Two:
• By December 31, 2016: 25% RPS-eligible resource procurement.
• January 1, 2014, through December 31, 2016, sufficient procurement to reflect
reasonable progress to ensure the above goal is achieved.
Resolution No. 11-183 - Page 4 of 6
Compliance Period Three:
• By December 31, 2020: 33% RPS-eligible resource procurement.
• January 1, 2017, through December 31, 2020, sufficient procurement to reflect
reasonable progress to ensure the above goal is achieved.
Section 4: Procurement Content Categories
The City Manager or his/her duly authorized designee shall assign all RPS-eligible resources
procured by the City to their appropriate procurement content category in accordance with the
provisions of PUC § 399.30(c)(3), consistent with PUC § 399.16.
Section 5: Grandfathering of Procurement Content Category Requirements
The City Manager or his/her duly authorized designee shall count all resources meeting the
requirements of PUC § 399.16(d) in full towards the procurement requirements set forth in this
RPS Enforcement Program, if all of the following conditions are met: (a) the renewable energy
resource was eligible under the rules in place as of the date when the contract was executed;
and (b) any contract amendments or modifications occurring after June 1, 2010, do not increase
the nameplate capacity or expected quantities of annual generation, or substitute a different
renewable energy resource; provided that the duration of the contract may be extended if the
original contract specified a procurement commitment of 15 or more years.
This provision permits, but does not require, resources meeting the requirements of PUC
§ 399.16(d) to be exempted from the procurement content requirements.
Section 6: Deviation From Procurement Content Category Requirements
The City Council may waive or reduce a procurement content requirement set forth in this RPS
Enforcement Program to the extent the City demonstrates that it cannot comply with such
requirements because of: (a) conditions beyond the control of the City due to any one of the
conditions set forth in PUC § 399.15(b)(5); or (b) other conditions adopted by the City Council
based on facts reasonably found by the City Council to be consistent with the intent of PUC §
399.15(b)(5) or PUC § 399.18 and the unique circumstances facing the City as a small
municipal electric utility.
Section 7: Delay of Timely Compliance
The City Council may adopt measures permitting the City to delay timely compliance with this
RPS Enforcement Program pursuant to PUC § 399.30(c)(2), consistent with the requirements of
PUC § 399.15(b)(5) or other conditions adopted by the City Council based on facts reasonably
found by the City Council to be consistent with the intent of PUC § 399.15(b)(5).
Section 8: Banking Rules
The City Council may adopt measures permitting the City to accumulate, beginning
January 1, 2011, excess procurement in one compliance period to be applied to any
subsequent compliance period provided that the quantity of excess procurement is determined
in the same manner as allowed for retail sellers pursuant to PUC § 399.13(a)(4)(B).
Resolution No. 11-183 - Page 5 of 6
Section 9: Cost Limitations
The City Council may establish a limitation on the procurement expenditures for all RPS-eligible
resources used to comply with this RPS Enforcement Program. In establishing such limit, the
City Council shall rely on elements consistent with PUC § 399.15(c)(1)-(3) and with pertinent
policies and rules established by the City Council, including but not necessarily limited to rate
regulations and existing bond covenants. The cost limitation value shall be included in the
Renewable Energy Resources Procurement Plan, as described in Section 10.
Section 10: Renewable Energy Resources Procurement Plan
The City Council directs the City Manager or his/her duly authorized designee to develop and
present a Renewable Energy Resources Procurement Plan to the City Council. At a minimum,
the Renewable Energy Resources Procurement Plan shall include: (a) the specified resources
that the City plans to use to meet the procurement targets adopted in Section 3, above; and (b)
the flexible compliance mechanisms to be utilized by the City pursuant to Sections 5, 6, 7, 8,
and 9, above. The City shall post a public notice whenever the City Council will deliberate in
public on the Renewable Energy Resources Procurement Plan. The City shall also provide data
annually to the Energy Commission and to report annually to the City's customers and the
Energy Commission in accordance with PUC § 399.30.
Section 11: Enforcement
The City Council directs the City Manager or his/her duly authorized designee to inform the City
Council at a public meeting in the event that the City will not meet the procurement
requirements set out in Sections 3 and 4 above, subject to the flexible compliance mechanisms
of Sections 5, 6, 7, 8, and 9, above. As soon as reasonably practicable following his/her
informing the City Council the City Manager or his/her duly authorized designee shall develop
and present a plan to bring the City into compliance.
Resolution No. 11-183 - Page 6 of 6