HomeMy WebLinkAboutResolution No. UB- 11-C86RESOLUTION NO. 11-C86
A RESOLUTION OF THE AZUSA UTILITY BOARD
ADOPTING A RENEWABLE PORTFOLIO STANDARD
("RPS") ENFORCEMENT PROGRAM IN COMPLIANCE
WITH STATE LAW (SBXI 2)
WHEREAS, the City of Azusa's Light & Water Department ("AL&W") maintains an
electric generation and distribution system for furnishing electricity to residents and businesses
of the City of Azusa ("Azusa"); and
WHEREAS, AL&W, a publicly -owned utility, provides reliable, low cost,
environmentally responsible power to residents and businesses in the Azusa community; and
WHEREAS, under prior laws, publically owned utilities were required to adopt their own
Renewable Portfolio Standard consistent with the state policy to encourage renewables, but were
not subject to the same numerical goals as investor owned utilities; and
WHEREAS, in 2003, consistent with Senate Bill 1078, Azusa Utility Board approved a
Renewable Portfolio Standard ("Azusa RPS") that would allow Azusa to serve twenty percent
(20%) of its retail load with renewable power by December 31, 2017; and
WHEREAS, in 2007, consistent with Senate Bill 107, the Azusa Utility Board approved a
revised City of Azusa RPS to adopt renewable energy goals of twenty percent (20%) by 2010
and thirty three percent (33%) by 2020, after taking into consideration market conditions,
renewable project availability, feasibility of delivery, and rate impacts; and
WHEREAS, on April 12, 2011 Governor Brown signed the California Renewable Energy
Resources Act (SBXI 2) with an effective date of December 10, 2011, which establishes the
state's renewable portfolio standard by requiring California's investor-owned utilities, as well as
publicly -owned utilities, to procure twenty percent (20%) on average of their energy from
renewable sources during the years 2011-2013, twenty five percent (25%) by 2016, and thirty-
three percent (33%) by 2020 and thereafter; and.
WHEREAS, SBX1 2 sets interim targets for RPS compliance, expands the roles of the
California Energy Commission and the California Air Resources Board, and places requirements
on the types of renewable resources eligible for compliance; and
WHEREAS, the Azusa Utility Board is the governing body of its local publicly- owned
electric utility with the authority to adopt and implement the requirements of state law.
1
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY
OF AZUSA DOES HEREBY FIND AS FOLLOWS:
Section 1. The Utility Board of the City of Azusa hereby directs the City of Azusa
Light & Water Department to modify the existing City of Azusa RPS to comply with applicable
provisions and permissible considerations of SBX1 2, subject to this Utility Board's approval
and jurisdiction as provided and permitted by law.
Section 2. The Utility Board of the City of Azusa hereby approves and adopts the
attached City of Azusa Renewable Portfolio Standard Enforcement Program.
Section 3. The Director of Utilities, or his designee, is hereby authorized and directed
to implement and administer the RPS Enforcement Program.
PASSED, APPROVED AND ADOPTED this 28`h day of November, 2011.
K.
ak
Jo eph R. ocha, Mayor
I, Vera Mendoza, City Clerk of the City of Azusa, do hereby certify that the foregoing
Resolution No. II -C86 was duly introduced and adopted at a regular meeting of the City
Council/Utility Board of the City Azusa on the 28th day of November, 2011, by the following
vote, to wit:
AYES: COUNCIL MEMBERS: GONZALES, CARRILLO, MACIAS, HANKS, ROCHA
NOES: COUNCIL MEMBERS: NONE
ABSENT:
Vera Mendoza,
MEMBERS: NONE
2
California Renewable Energy Resources Act (SBX1-2)
Azusa, CA Light & Water
Renewable Portfolio Standard Enforcement Program
NOTE: As of the effective date of the program being established herein, California
regulations governing implementation of SBX1 2 are not finalized. However, the law
requires that electric utilities implement an SBX1 2 Enforcement Program by
1/1/2012. Accordingly, the enforcement program herein is intended to be consistent
with the law but at the same time provide sufficient flexibility to accommodate
future applicable regulations.
1. Establishment of Renewable Portfolio Standard Enforcement Program
Consistent with applicable provisions and requirements of the California Senate Bill
No. 2 (SBX1 2), as codified in Section 399.30 (e) of the California Public Utilities Code,
the City Council/Utility Board approves and directs implementation of this
Renewable Resources Enforcement Program ("Program"):
2. Program approval, implementation and jurisdiction
Except to the extent applicable law and/or regulations dictate otherwise or explicitly
prohibit, this Program and all its provisions shall be approved by and implemented
under the jurisdiction of the Azusa Light & Water Utility Board.
3. Program administration
This Program shall be administered by Azusa Light & Water Department under the
direction and sole jurisdiction of the Azusa Light & Water Utility Board.
4. Determination of compliance with this Program
Azusa Light & Water's compliance with this Program will be determined by the
Azusa Light & Water Utility Board.
S. Program compliance verification
November 28, 2011
Azusa light & Water
Renewable Portfolio Standard Enforcement Program
To the extent allowed by applicable provisions of the law and/or regulations, the
California Energy Commission may verify Azusa Light & Water's compliance with this
Program.
6. Program compliance enforcement
To the extent allowed by applicable provision(s) of the law and/or regulations, the
California Air Resources Board may take action(s) to enforce Azusa Light & Water's
compliance with this program (to include rendition of penalties, if any).
7. Determination of "unmet" long-term generation resource needs
Consistent with Section 399.30 (a) of the Public Utilities Code, the Azusa Utility
Board may adopt specific definition(s), and a mechanism for determination of unmet
long-term generation resource needs.
S. Special Program measures that may be adopted
Consistent with Sections 399.30 (d) of the Public Utilities Code, the Azusa Utility
Board may adopt measures including rules permitting applying excess procurement
in a compliance period to the subsequent compliance periods; defining conditions
that allow for delaying timely program compliance; and cost impact limitations for
RPS expenditures. Other operational and/or cost impact containment measures may
be adopted by the Board provided such measures are not in conflict with applicable
laws.
9. Changes to this Program
Changes to this Program may be implemented under the direction of the Azusa
Utility Board. Consistent with Section 399.30 (e) of the Public Utilities Code, not less
than 10 day's notice shall be given to the public before any meeting is held by the
Board to make substantive changes to this Program.
10. Establishing a Procurement Plan
Within 90 days from the time that SBX1-2 regulations are finalized, but no later than
October 31, 2012, Azusa Light & Water shall devise and present to the Board for
November 28, 2011
approval a renewable resources procurement plan ("Renewable Procurement Plan').
The plan shall be reviewed on an annual basis thereafter. The Renewable
Procurement Plan shall be consistent with applicable provisions of Section 399.30 of
the Public Utilities Code and shall be subject to the enforcement hereto.
Azusa's Renewable Procurement Plan will include the following elements:
• Determination of unmet needs & methodology for establishing same
• Compliance periods, targets & methodology used for compliance accounting
• Procurement categories or "buckets"
• RPS resource qualifications
• Rules and calculation methodology for banking "excess' RPS procurement and
applying such toward forward compliance periods
The Renewable Procurement Plan shall be reviewed annually. Appropriate advisories
and notifications of plan reviews shall be posted consistent with the applicable law.
11. Relationship to Azusa current RPS program
This Enforcement Program, in conjunction with the Renewable Procurement Plan
when adopted, shall replace and supersede the existing Azusa RPS program
established by Azusa Light & Water and previously approved by the Azusa Utility
Board for the purpose of compliance with Senate Bills 1078 and 107. To the extent
allowed by law, all renewable resources approved by Azusa Utility Board under the
current Azusa RPS program shall count in full for the purpose of accounting for and
achieving compliance with SBX 1-2.
12. Reporting
Azusa Light & Water shall report to the Azusa Utility Board, on an annual basis, its
SBX1-2 compliance status, progress, and forward plans. All other reporting shall be
consistent with Section 399.30 of the Public Utilities Code.
November 28, 2011