HomeMy WebLinkAboutResolution No. 13-C91 (2)0
RESOLUTION NO. 13-C91
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A RESOLUTION OF THE UTILITY BOARD/CITY COUNCIL OF THE
CITY OF AZUSA ADOPTING THE AZUSA ALLOCATED GHG
ALLOWANCE USE AND PROCEEDS POLICY
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 of the Azusa community; 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 and
regulations; and
WHEREAS, the Azusa Utility Board is empowered by law to, among other, determine
what the reasonable cost of service, return on utility investment, and other prudent costs of
performing utility business and ensuring that utility operations are proper, fair and adequate; and
WHEREAS, the Azusa Utility Board is empowered by law to set rates for its utility's
customers, to include rates for electricity; and
WHEREAS, Assembly Bill 32 (AB 32) requires California to reduce its greenhouse gas
(GHG) emissions to 1990 levels by 2020; and
WHEREAS, the California Cap -and -Trade Program is a key tool designed by the
California Air Resources Board to achieve the state's GHG reduction goal; and
WHEREAS, AL&W is required to participate in the California Cap -and -Trade Program;
and
WHEREAS, AL&W has been allocated free GHG emission allowances for the benefit of
AL&W's ratepayers; and
WHEREAS, the California Cap -and -Trade regulation requires that any proceeds AL&W
generates from selling free allowances in the Cap -and -Trade auctions must be used exclusively
for the benefit of AL&W's electric ratepayers, consistent with the goals of AB 32.
NOW, THEREFORE, THE UTILITY BOARD/CITY COUNCIL OF THE CITY
OF AZUSA DOES HEREBY FIND AS FOLLOWS:
SECTION 1. Consistent with applicable provisions of AB 32 and corresponding
regulations, the Utility Board/City Council of the City of Azusa herby accepts and asserts its role
as administrator of the AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY.
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SECTION 2. The AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY
provides AL&W with appropriate guideline for use of proceeds from sales of allocated GHG
Allowances;
SECTION 3. The AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY
outlines the parameters for use of proceeds from the sale of allocated allowances in accordance
with the requirements of the Cap -and -Trade regulation;
SECTION 4. The Utility Board/City Council of the City of Azusa hereby approves and
adopts the attached AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY;
SECTION 5. The Director of Utilities, or his designee, is hereby authorized and directed
to implement and administer the AZUSA GHG ALLOWANCE USE AND PROCEEDS
POLICY.
PASSED, APPROVED and ADOPTED this 25`h day of November, 2013.
seph Romero Rocha
Mayor
ATTEST:
ie*4 di ce Cornejo, JLf.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 13-C91 was duly adopted by the
Utility Board/City Council of the City of Azusa at a regular meeting of the Azusa Light & Water
Utility Board on the 25th day of November, 2013, by the following vote of the Council:
AYES:
COUNCILMEMBERS
NOES:
COUNCILMEMBERS
ABSENT:
COUNCILMEMBERS
JepTe}✓ wz'5 omejo, Jr.
City Clerk
GONZALES, ALVAREZ, ROCHA
NONE
CARRILLO, MACIAS
AZUSA GHG ALLOWANCE USE AND PROCEEDS POLICY
Per Cap -and Trade regulations, allocated GHG Allowances and any proceeds from sales thereof
may be used only for the benefit of Azusa Light & Water electric ratepayers. In this regard:
1. Allocated GHG Allowances may be:
a. Used to directly cover Azusa compliance obligations associated with Azusa
energy imports into California for the purpose of serving Azusa load.
b. Transferred to cover Azusa compliance obligations associated with California
interconnected generation projects in which Azusa is power off -taker or
participant.
2. Proceeds from sales of Allocated GHG Allowances will be used as follows:
a. Credited to Azusa`s electric ratepayers in the form of a Power Cost Adjustment or
other such similar direct ratepayer credit or benefit; and/or
b. Investments in renewable resources such as generation projects or the purchase of
renewable electricity or RPS compliance instruments; and/or
c. Purchases of GHG Allowances or other AB 32 compliance instruments needed
for AL&W's load and generation obligations.