Resolution No. 09964 1 RESOLUTION NO. 9964
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 VERNON APPROVING AND AUTHORIZING THE USE OF
4 REVENUES TO FUND THE PROCUREMENT OF QUALIFYING
RENEWABLE ENERGY RESOURCES AND APPROVING CERTAIN
5 EXPENDITURES CONSISTENT WITH THE CITY'S RENEWABLE
PORTFOLIO STANDARD
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7 WHEREAS, the City of Vernon ("City") is a chartered municipal
8 corporation of the State of California that owns and operates a system
9 for the generation, purchase, transmission, distribution and sale of
10 electric capacity and energy; and
11 WHEREAS, on October 18, 2006, the City Council of the City of
12 Vernon adopted Resolution No. 9155 adopting the City of Vernon Light &
13 power Department Public Benefits Program (the "Program") that currently
14 focuses in the area of energy efficiency and consists of a
15 Comprehensive Energy Audit Program, Customer Incentive Program,
16 Customer Directed Program, Energy Education and Demonstration .Workshops
17 and LED Traffic Signals/Lights Program; and
18 WHEREAS, Resolution No. 9155 also authorized the expenditure
19 of revenues derived from the Public Benefits Charge pursuant to the
20 Program to provide rebates. to the Community Service Department for the
21 LED Traffic Signals/Lights Program, authorized the Light & Power
22 Department. to administer the Program and to expend .revenues derived
23 from the Public Benefits Charge in a sum not to exceed $100,D00-per
24 year unless authorized by the City Council and authorized the Light &
25 Power Department to collect information and report to the interested
26 California or Federal department or agency respecting the Program, the
27 expenditures made and the energy efficiency measures undertaken by the
28 City; and
1 WHEREAS, on May 11, 2009, the City Council of .the City of
2 Vernon adopted Resolution No. 9952 adopting an amended City of Vernon
3 Renewable Portfolio Standard ("RPS") establishing a goal of serving
4 twenty percent (20°s) of the City's load with eligible renewable energy
5 resources by 2017; and
6 WHEREAS, it is the City's policy to allocate revenues derived
7 from the Public Benefits Charge, less the cost to administer programs,
8 in a fair and equitable manner and consistent with Section 385 of the
9 Public Utilities Code; and _
10 WHEREAS, by memo dated May 19, 2009, the Director of Light &
11 Power has recommended the use of revenues derived from the Public
12 Benefits Charges to fund the procurement of the .qualifying renewable
13 energy resources consistent with the RPS and to remove the expenditure
14 limit of $100,000.00 per ;year on, .the Program.
15 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
16 CITY OF VERNON AS FOLLOWS:
17 SECTION 1: The City Council of the City of Vernon hereby
18 finds and determines that the recitals contained hereinabove are true
19 and correct.
20 SECTION 2: The City Council of the City of Vernon hereby
21 authorizes the expenditure of revenues derived from the Public Benefits
22 Charge, pursuant to the Program, to fund the procurement of qualifying
23 renewable energy resources consistent with the City's RPS.
24 SECTION 3: The City Council of the City of Vernon hereby
25 amends Section 4 of Resolution No. 9155 to remove the expenditure limit
26 of $100,000.00 per-year on the Program.
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1 SECTION 4: All resolutions, or .parts of resolutions, not
2 consistent with or in conflict with this Resolution are hereby
3 repealed.
4 SECTION 5: The City Clerk of the City of Vernon shall
5 certify to the passage of this resolution, and thereupon and thereafter
6 the same shall be in full force and effect.
7 APPROVED AND ADOPTED this 1St day of June, 2009.
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10 Name: Hilario Gonzales
11 Title: Mayor /~Qy~~-=~-~~-
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13 ATTEST:
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M UELA GIRON, City-Clerk
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1 STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby.
5 certify that-the foregoing Resolution, being Resolution No. 9964, was
6 duly adopted by the City Council of the City of Vernon at a regular
7 meeting of the City Council duly held on Monday,~June 1, 2.009, and
8 thereafter was duly signed by the Mayor or Mayor Pro-Tem of ,the City of
9 Vernon.
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MANUELA GIRON, ity Cler k
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13 (SEAL)
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CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 3, 2009
TO: Donal O'Callaghan, City Administrator/Director of Light & Power
FRO V~1• Nelly Giron, City Clerk
RE: ~ Resolution No. 9964 - A Resolution of the City Council of the City of Vernon Approving
and Authorizing the Use of Revenues to Fund the Procurement of Qualifying Renewable
Energy Resources and Approving Certain Expenditures Consistent With the City's
Renewable Portfolio Standard
Transmitted herewith is a copy of Resolution No. 9964 referenced above, which was approved by City
Council on June 1, 2009.
Thank you.
NG:dj
c: Resolution No. 9964
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STAFF REPORT ~ ~~a~
LIGHT & POWER
DATE: May'19, 2009
TO: .Mayor and City Council MAY 2 0 2009
FROM: Donal O'Callaghan, Director of Light and Power CIS C~ERK'~ OFFICE
RE: Funding- Authorization for Implementing the City of Vernon
Renewable PortFolio Standard
PURPOSE
California Assembly Bill 1890 (AB 1890) enacted by the California Legislature and
signed. into law by Governor -Pete Wilson in 1996 requires. publicly owned utilities like
the City of. Vernon to collect a nbnbypassable usage based Public Benefits Charge on
local distribution services to fund investments in energy efficiency, low-income services,
renewable energy, and Research Development and Demonstration (RD&D) programs.
California Senate Bill 1078 (SB 1078) enacted by the California Legislature and signed
into law by Governor Arnold Schwarzenegger in 2002 requires the governing body of a
local publicly owned utility like the City of Vernon to implement and enforce a
Renewable Portfolio Standard (RPS) that recognizes the intent of the Legislature to
encourage renewable resources.
It is the policy of the City of Vernon to allocate revenues derived from the Public
Benefits Charge, less the cost to administer programs, in a fair and equitable manner.
.Specific projects and expenditures will be consistent with Section 385 of the Public
Utilities Code.
From time to time the City approves programs consistent with the intent of the AB 1890
legislation and its policy statement. The City Council has approved a Public benefits
Program with focus in the area of energy efficiency. The existing Program consists of:
_Comprehensive Energy Audit Program, Customer Incentive Program, Customer
Directed. Program, Energy Education and Demonstration Workshops, and LED Traffic
Lights. Program. The City Council authorized the Light and Power Department to
administer the Public Benefits program and to expend revenues derived from the Public
Benefits Charge, not to exceed $100,000 per year without further authorization from the
City Council, to fund the Public Benefits Program.
Staff Report -May 19, 2009
Mayor and City Council
Page 2
Consistent with the intent of S~ 1078 the City Council has adopted an RPS goal which
provides that a portion of the City of Vernon's resource mix will consist of electricity
generated from renewable energy resources. In order to develop new renewable
energy resources the City of Vernon has acquired interest in real property in Tehachapi,
California. This real property is well suited for development of wind and solar renewable
resources. The City of Vernon plans to use some of the power from the development of
renewable resources to meet the City's RPS goal. Investment in renewable energy and
technologies is consistent with Section 385 of the Public Utilities code and the
legislative intent of AB 1890..
Recommendation:
The Light and Power Department staff recommends the City Council .authorize the use
of revenues derived from the Public Benefits Charges to fund the procurement of
qualifying renewable energy .resources consistent with the City of Vernon Renewable
Portfolio Standard. Furthermore, staff recommends the City Council remove the
expenditure limit, of $100,000 per year on the Public Benefits Program.
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c: Document Control
CITY OF VERNON
RENEWABLE PORTFOLIO STANDARD
BACKGROUND
Senate Bill 1078 (SB 1078) was signed by Governor Gray Davison September
12, 2002 and became law January 1, 2003.
For local publicly owned electric utilities such as the City of Vernon the law,
as amended by Senate Bill 107 which was signed into law September 26, 2006,
requires the following:
• The governing body of a local publicly owned utility is responsible for
implementing and enforcing a Renewable Portfolio Standard (RPS) that
recognizes the intent of the legislature to encourage renewable energy
resources taking into consideration the effects on rates, reliability,
financial resources and the goal of environmental improvement.
• Each local publicly owned utility must report to its customers and to
the State Energy Resources Conservation and Development Commission
(CEC) annually: (1) expenditure of public benefits funds collected for
eligible renewable energy resources including a description of each
program and the expected or actual results, (2) the resource mix. by fuel
type including contribution of renewable energy resources to the mix,
and (3) the utility's status in implementing a renewable.portfolio
standard and the utility's progress toward attaining the standard
following implementation.
PURPOSE
This RPS represents Vernon's commitment to renewable energy resources
procurement consistent with the legislative intent of SB 1078.
GOAL
The City of Vernon's resource mix will consist of electricity from "eligible"
renewable energy resources of 20% by 2017.
QUALIFYIl~iG RENEWABLE ENERGY RESOURCES
Electricity produced from the following technologies constitute "eligible"
resources: hydro electric generation, photovoltaic, wind, solar thermal,
biomass, geothermal, fuel. cells using renewable fuels, renewable distributed
generation on the customer side of the meter, waste tire, digester gas, landfill
gas, and municipal solid waste generation technology.
TARGET
Subject to the constraints described herein, emphasis will be made to locate
local renewable energy resources within the City limits, particularly on City-
owned facilities.
SYSTEM RATE IMPACT
Purchase of renewable energy resources shall have no negative impact on retail
electric rates.
PERIODIC REVIEW
This R.PS will be reviewed at least every five years to address potential
changes.
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