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Resolution No. 6228 1 RESOLUTION NO. 6228 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON AMENDING RESOLUTION NO. 5760 TO PROVIDE FOR THE ESTABLISHMENT OF A LOW EMISSION ASSISTANCE PROGRAM ("LEAP") AND THE ESTABLISHMENT OF ELECTRICAL RATES TO BE CHARGED FOR ELECTRICAL ENERGY DISTRIBUTED AND SUPPLIED BY SAID CITY WITHIN ITS BOUNDARIES PURSUANT TO SAID PROGRAM BY ADDING NEW SCHEDULE LEAP, EXHIBIT "0" 4 5 6 7 8 WHEREAS, the City Council of the city of Vernon adopted Ordinance No. 929 on July 28, 1982, providing the terms under which rates are to be charged for electrical energy distributed and supplied by said City within its boundaries; and WHEREAS, the City Council of the City of Vernon adopted 9 10 II 12 l3 14 Ordinance No. 940 on December 6, 1983, providing that rates to be charged for electrical energy distributed and supplied by said 15 16 l7 City within its boundaries shall be set by resolution; and WHEREAS, the City of Vernon desires to adopt LEAP in order to mitigate the loss of manufacturing facilities because of l8 South Coast Air Quality Management District emission rules and 19 regulations; and 20 WHEREAS, the City council of the City of Vernon finds it 21 necessary to add new Schedule LEAP (Exhibit "0") in order to establish rates and charges for electricity sold pursuant to LEAP. 22 23 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: 24 25 26 27 28 SECTION 1: That the City council of the City of Vernon does hereby find and determine that the recitals contained hereinabove are true and correct. I SECTION 2: The City Council of the City of Vernon hereby 2 adopts the Low Emission Assistance Program, a copy of which 3 Program has been presented to the City Council concurrently with 4 this resolution, and the City Council hereby orders said Program 5 to be received and filed by the City Clerk. 6 SECTION 3: The rules, terms and conditions set forth in 7 the attached Rate Schedule LEAP (Exhibit non) are hereby 8 incorporated by this reference and made a part hereof as though 9 fully set forth at length and are hereby adopted as the City's 10 rates, terms and conditions for the distribution of the electrical II energy supplied by the City of Vernon pursuant to the LEAP. 12 SECTION 4: In all other respects, Resolution No. 5760, 13 as amended by Resolution Nos. 5805, 5951 and 6202, shall remain in 14 full force and effect and the provisions contained in Resolution 15 Nos. 5466, 5111, 5076, 5760, 5805, 5951, 6202 which are not 16 consistent with or in conflict with this Resolution are hereby 17 repealed. l8 SECTION 5: The City Clerk of the City of Vernon shall 19 certify to the passage of this resolution and thereupon and 20 thereafter the same shall be in full force and effect. 21 APPROVED AND ADOPTED this 23rd day of March, 1993. ~ .~ (~. ":C'~ ' , I ./ ~ONIS c. MAL G. Ma or 22 23 24 AT/4-/~h BRUCE V. MALKENHORST, City Clerk 25 26 27 28 -2- I STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) 2 3 4 I, BRUCE V. MALKENHORST, City Clerk of the city of 5 6 Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 6228, was duly adopted by the City council of the City of Vernon at an adjourned regular meeting of the City council 7 8 duly held on Tuesday, March 23. signed by the Mayor of the City 1993, and thereafter was duly of 7L-/~4 BRUCE V. MALKENHORST, City Clerk 9 10 II l2 (SEAL) l3 14 15 l6 17 l8 19 20 2l 22 23 24 25 26 27 28 -3- Exhibit 0 CITY OF VERNON LIGHT AND POWER DEPARTMENT SCHEDULE NO. LEAP ADDlicabilitv: Applicable to City of Vernon electric customers taking services under GS-2, TOU-G, or TOU-V rate schedules, and who have made processandlor equipment modifications which result in quantifiable reductions in air emissions, and such modification has a minimum net load increase of 200 kW and who has also been approved by the City Council of the City of Vernon to receive service under this schedule. Territory: within the City limits of the City of Vernon Credit: A credit of two dollars and kilowatt-month shall be applied thirty-six (36) months for each formula below: seventy-five cents ($2.75) per to the monthly electric bill for kilowatt of R as computed by the ~=dxA where d = on-peak diversity factor of the additional equipment. A = The value in kilowatts of the net incremental load associated with the approved process and/or -equipment modification. (Minimum of 200 kW) Authorized by the city of Vernon Ordinance No. 940 Effective 12/6/83 Resolution No. 6228 Effective 03/23/93 1 SPECIAL CONDITIONS 1. Application Forms: A completed LOW EMISSION ASSISTANCE PROGRAM application form will be required for consideration to receive credit service under the schedule. 2. Environmental Impacts Assessment: The City of Vernon in its sole judgment, will approve application for the service based on and not limited to the net environmental impact of the proposed process andlor equipment modification and the derived system benefits. 3. Post-Modification Inspection: The City of Vernon will conduct a post process andlor equipment modification inspection, and the service under this schedule will be granted only if it is determined that the modifications are substantially in conformance with the modification plan as set forth in the application form and upon certification by the customer that all required permits to operate have been obtained. 4. Modification Layout Prints: The city may require the customer to furnish electrical layout prints of proposed modification, including copies of the contracts, or may specify other documentation. Customer shall supply all requested information. 5. Permit,s: CUstomer must obtain final approval of all required permits including but not limited to the City of Vernon electrical permits. 6. Inspections: The customer shall grant the City access to the project at any time. 7. Timetable: The customer shall have six (6) months from the date of the approval to initiate a modification project, and shall have twelve (12) months from the date of the approval to complete all installation or modification work. Additional time to initiate or complete the project may be granted subject to the City'S approval. 8. Pe~iodic Evaluation: The City reserves the right to periodically evaluate the performance of the modification, and adjust the credit accordingly. Authorized by the City of Vernon Ordinance No. 940 Effective 12/6/83 Resolution No. 6228 Effective 03/23/93 2 r;)(Al~I' '- - {( o l/) '- ~ GclcRR LOW EMISSION ASSISTANCE PROGRAM (LEAP) INTRODUCTION: In the past few years, the City of Vernon has experienced a considerable loss of its industrial base. This trend is mainly due to the increasing costs of doing business in California, which can be attributed to stringent regulatory burdens put on the businesses, among them air quality regulations in the South Coast Air Quality Basin. The trend is likely to continue and become more stringent under the newly proposed Regional Clean Air Market Incentive Program (RECLAIM) . This program will have a major impact on many of the City's major customers. Several companies in the City are presently looking into process or equipment changes to cope with the air quality regulations. It is in the ci ty' s interest to see the customers succeed in their efforts. PROGRAM DESCRIPTION: The LOW EMISSION ASSISTANCE PROGRAM (LEAP) is designed to assist the customers in aChieving lower air emission objectives mentioned in the Introduction. The main features of the program are as follows: 1. Eligible Customers: The existing City of Vernon electric customers taking services under GS-2, TOU-G, or TOU-V rate . . , " schedules are eligible to apply for the program. 2. Eligible Projects,: The program will target those projects which make permanent modifications on existing processes andlor equipments ~hat can result in quantifiable reductions in air emissions, and that such modification results in a minimum net load increase of 200 kW. 3. Assistance: The assistance will be given in the form of a credit on customer's monthly electric bill over a period of time. Specifically, a credit of two dollars and seventy-five cents ($2.75) per kW-monthwill be applied to the customer's monthly electric bill for each kW of additional on-peak electric load resulting from the modification, and such credits will be applied for a period of thirty-six (36) months. 4. Project Approval Process: The customer will submit a LOW EMISSION ASSISTANCE PROGRAM application form detailing the proposed project and based on the potential environmental and derived system benefits, the City Council of the City of Vernon may accept or reject the project application. Once the project is accepted, the customer has six and twelve months, respectively, from the date of project acceptance to initiate and complete the project. The credits on monthly bills will commence after post-modification inspection is conducted and 2 .. l' I '" .. ' l: it is determined that the modification has complied with the proposed specifications outlined in the application form~ 5. Miscellaneous Project control Mechanisms: The customer may be required to periodically submit project layout prints, contracts, permits, or any other documentations upon request by the city. Furthermore, the city may conduct periodic inspection and performance evaluation of the project, and adjust the credit if deemed appropriate. 6. Program Implementation and Administration: The Light and Power Department will implement and administer the program, ensuring that the potential projects are in conformance with the objectives, requirements and conditions mentioned above. 3