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HomeMy WebLinkAboutAgenda Report - August 20, 2008 E-14AGENDA ITEM E40 14 lmlmzhh CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Adopt a Resolution Directingthe Mayor to Endorse a Letterfrom the Northern California PowerAgency to the Governor of California to Support Establishment of a 33% Renewable Portfolio Standard for All Electric Utilities in the State (EUD) MEETING DATE: August 20,2008 PREPARED B Y Electric Utility Director RECOMMENDED ACTION: Adopt a resolution directing the Mayor to endorse a letterfrom the Northern California PowerAgency (NCPA)to the Governorof California to support establishment of a 33% Renewable Portfolio Standard (RPS) for all electric utilities in California. BACKGROUND INFORMATION: Current state law requires all publicly owned electric utilities to adopt and implement a renewable energy target of at least 20% by 2010. In compliance, the Lodi City Council previously established an RPS of 20% through Resolution No. 2003-71 on April 16, 2003. Today, Lodi's power supply mix is about 25% renewable when qualified small hydro is included and approximately 50% renewable with large hydroelectric energy in the mix. (The State's definition of renewable energy excludes large hydro.) There is significant pressure in the state to increase the RPS. The Office of the Governor has released a document titled "Guiding Legislative Principles to Achieve 33% Renewables by 2020. We are told the Governor intends to make a late -session legislative push to place such an increased standard into law. A part of the rationale for action at this time may be the initiative (Proposition 7) that has qualified for the November 2008 ballot to increase RPS to 40% by 2020 and 50% by 2025. Many feel this is a flawed initiative and one which is overly prescriptive on publicly owned utilities like Lodi Electric utility. The purpose of the attached letter, which would be sent to the Governor by the Northern California Power Agency with endorsement by the leaders of NCPA members, is to (i) support establishment of an increased RPS target of 33% by 2020 and (ii) requestthat local agencies be given flexibility to implement such a target through local decision-making instead of state direction. The City Council's endorsement of the attached letter is requested FISCAL IMPACT: None FUNDING: Not applicable Ge a F. fAorrow Electric Utility Director APPROVED: BI ' ing, City Manager August —, 2008 The Honorable Arnold Schwarzenegger Governor, State of California State Capitol Building Sacramento, CA 94249 Dear Governor Schwarzenegger, The Northern California Power Agency (NCPA) and its member communities across Northern California have a long tradition of leadership in the investment in renewable energy resources. We attribute that strong record of achievement to publicly owned utilities' long -held ability to retain local authority to meet the goals of the communities they serve, as well as those of both the State Legislature and your office. NCPA is a nonprofit California joint powers agency established in 1968 to generate, transmit, and distribute electric power to and on behalf of its seventeen member utilities. Together, we serve nearly 700,000 electric consumers in Central and Northern California and approximately 3.2 percent of the state's electricity load. NCPA is supportive of a 33% statewide Renewable Portfolio Standard (RPS) target for all state utilities, provided that the authority over, and oversight of, the RPS program remains— as is now the practice— with the local governing boards and elected officials who are directly accountable to their residents and community. Our strong and effective record on renewable energy provides no basis for further state intrusion on local government authority. In fact, publicly owned utilities' success in growing our supplies of renewable energy and keeping greenhouse gas (GHG) emissions low is directly attributable to our ability to make locally tailored renewable energy decisions that allow communities to determine for themselves the most effective path to meeting the state's renewable energy targets that reflects the unique meteorological, geographical, and demographical aspects of our communities. To that end, each NCPA member community has formally adopted aggressive RPS targets, and are in most instances are already exceeding the state average RPS numbers. Collectively, NCPA members are already above the 20% RPS threshold, and many individual NCPA member utilities already have California -eligible RPS levels that exceed a 33% threshold. The ability of California's pubic power utilities, including NCPA's members, to create community -specific RPS programs has resulted in publicly owned utilities making greater progress toward achieving the state's renewable energy and GHG reduction goals – at lower cost to electricity consumers –than would be possible with a "one -size -fits -all" mandate. Each community -owned public utility is unique, and we see this great diversity is an asset to the state's effort to maximize the use of renewable energy to help achieve the state's overall goal of reducing GHG emissions. Northern California's public power systems and their governing boards are committed to doing their part to meet the energy needs of their communities as well as those of the State of California. Both collectively and individually, NCPA's members— through aggressive and forward-looking energy efficiency programs and new continuing investment in renewable energy sources— are leading the way in meeting the goals of AB 32. We look forward to continuing our work with you and your office to achieve these goals. Sincerely, RESOLUTION NO. 2008-165 A RESOLUTION OF THE LODI CITY COUNCIL DIRECTING THE MAYOR TO ENDORSEA LETTER FROMTHE NORTHERN CALIFORNIA POWER AGENCY TO THE GOVERNOR OF CALIFORNIATO SUPPORT ESTABLISHMENTOF A 33% RENEWABLE PORTFOLIO STANDARD FOR ALL ELECTRIC UTILITIES IN THE STATE WHEREAS, current state law requires all publicly owned electric utilities to adopt and implement a renewable energy target of at least 20% by 2010; and WHEREAS, in compliance, the Lodi City Council previously established a Renewable Portfolio Standard (RPS) of 20% through the adoption of Resolution No. 2003-71 on April 16, 2003; and WHEREAS, Lodi's power supply mix is about 25% renewable when qualified small hydro is included and approximately 50% renewable with large hydroelectric energy in the mix (the State's definition of renewable energy excludes large hydro); and WHEREAS, there is significant pressure in the state to increase the RPS, whereby the Office of the Governor has released a document titled "Guiding Legislative Principlesto Achieve 33% Renewables by 2020; and WHEREAS, the purpose of the attached letter, which would be sent to the Governor by the Northern California Power Agency with endorsement by the leaders of the Northern California Power Agency (NCPA) members, is to (i) support establishment of an increased RPS target of 33% by 2020 and (ii) request that local agencies be given flexibility to implement such a target through local decision-making instead of state direction. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby directs the Mayor to endorse a letter from the NCPA to the Governor of California to support establishment of a 33% RPS for all electric utilities in California. Dated: August 20, 2008 hereby certify that Resolution No. 2008-165 was passed and adopted by the Lodi City Council of the City of Lodi in a regular meeting held August 20, 2008, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Katzakian, and Mayor Mounce NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS—NoWANDI City Clerk 2008-165 Continued July 16,2008 Jennifer Perrin From: Randi Johl Sent: Thursday, August 21,2008 9:51 AM To: George Morrow (Lodi EUD); Blair King cc: Larry Hansen; Jennifer Perrin Subject: RE: FYI -- NCPA Letterto Governor on Proposed 33% RPS (Green Power) in 2020 Thanks George - we will hold the letter in a suspense file until such time as it is needed. Randi From: George Morrow (Lodi EUD) Sent: Thursday, August 21,2008 9:34 AM To: Blair King Cc: Randi Johl; Larry Hansen Subject: FYI -- NCPA Letter to Governor on Proposed 33% RPS (Green Power) in 2020 I spoke with NCPA this morning regardingthe Mayor's execution of the above letter which was approved last night by the City Council. The latest news is that it appears that the proposed legislation that the letter referenceswill be not introduced in the current State legislative session due to the effort being directed at resolving the budget stalemate. NCPA expects that the legislation will be introduced early in the next legislative session, however, and the letter may be "dusted off" at that time. If anything changes on this subject, I will let you know. George F. Morrow, Director Lodi Electric Utility 1331 S. Ham Lane Lodi, CA 95242 (209) 333-6828 (209) 329-4058 (cell) (209) 333-1299 (fax) gmorrow9 lodieWric.com 8/21/2008 CITY COUNCIL JOANNE MOUNCE, Mayor LARRY D. HANSEN, Mayor Pro Tempore SUSAN HITCHCOCK BOBJOHNSON PHIL KATZAKIAN CITY OF LODI CITY HALL, 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6702 1 FAX (209) 333-6807 www.lodi.gov citycrerk@lodi.gov August 21,2008 The Honorable Arnold Schwarzenegger Governor, State of California State Capitol Building Sacramento, CA 94249 Dear Governor Schwarzenegger: BLAIR KING, City Manager RANDI JOHL, City Clerk 0. STEPHEN SCHWABAUER City Attorney The Northern California Power Agency (NCPA) and its member communities across Northern California have a long tradition of leadership in the investment in renewable energy resources. We attribute that strong record of achievement to publicly owned utilities' long -held ability to retain local authorityto meet the goals of the communities they serve, as well as those of both the State Legislature and your office. NCPA is a nonprofit California joint powers agency established in 1968to generate, transmit, and distribute electric power to and on behalf of its 17 member utilities. Together, we serve nearly 700,000 electric consumers in Central and Northern California and approximately 3.2 percent of the state's electricity load. NCPA is supportive of a 33% statewide Renewable Portfolio Standard (RPS) target for all state utilities, provided that the authority over, and oversight of, the RPS program remains—as is now the practice—with the local governing boards and elected officials who are directly accountable to their residents and community. Our strong and effective record on renewable energy provides no basis for further state intrusion on local government authority. In fact, publicly owned utilities' success in growing our supplies of renewable energy and keeping greenhouse gas (GHG) emissions low is directly attributableto our ability to make locally tailored renewable energy decisions that allow communities to determine for themselves the most effective path to meeting the state's renewable energy targets that reflectsthe unique meteorological, geographical, and demographical aspects of our communities. To that end, each NCPA member community has formally adopted aggressive RPS targets and in most instances is already exceeding the state average RPS numbers. Collectively, NCPA members are already above the 20% RPS threshold, and many individual NCPA member utilities already have California -eligible RPS levels that exceed a 33% threshold. The ability of California's public power utilities, including NCPA's members, to create community -specific RPS programs has resulted in publicly owned utilities making greater progress toward achieving the state's renewable energy and GHG reduction goals—at lower cost to electricity consumers—than would be possible with a "one -size -fits -all" N:1AdministrationlCLERK1FollowupllRenewablePortfolio.doe mandate. Each community -owned public utility is unique, and we see this great diversity as an asset to the state's effort to maximize the use of renewable energy to help achieve the state's overall goal of reducing GHG emissions. Northern California's public power systems and their governing boards are committed to doing their part to meet the energy needs of their communities as well as those of the State of California. Both collectively and individually, NCPA's members—through aggressive and forward-looking energy efficiency programs and new continuing investment in renewable energy sources—are leading the way in meeting the goals of AB32. We look forward to continuing our work with you and your office to achieve these goals. Sincerely, JoAnne L. Mounce Mayor, City of Lodi JM/jmp cc: City Council City Manager Electric Utility Director Proposed NCPA multi -signature letter from member a PUBLIC AGENCY communities to GovernorArnold Schwarzenegger. tioAT�EAN CALIFORNIA POWER AGENCY A. July _, 2008 651 Commerce Drive The Honorable Arnold Schwarzenegger A o s e v I le, CA 9 5 6 7 6 Governor, State of California (916} 761-3636 State Capitol Building Sacramento, CA 94249 www ��Pa coin Dear Governor Schwarzenegger. `TheNorthern California Power Agency (NCPA) and its member communities across Northern California hare a long tradition of leadership in the investment in renewable energy resources. We attribute that strong record of achievement to publicly owned utilities' long -held ability to retain local authority to meet the goals of the communities they serve, as well as those of both the State Legislature and your office. NCPA is a nonprofit California joint powers agency established in 1968 to generate, transmit, and distribute electric power to and on behalf of its seventeen member utilities. Together, we serve nearly 700,000 electric consumers in Central and Northern California and approximately 3.2 percent of the state's electricity load. NCPA is supportive of a 33% statewide Renewable Portfolio Standard (RPS) target for all state utilities, provided that the authority over, and oversight of, the RPS program remains — as is now the practice — with the local governing boards and elected officials who are directly accountable to their residents and community Our strong and effective record on renewable energy provides no basis for further state intrusion on local government authority. In fact, publicly owned utilities' success in growing our supplies of renewable energy and keeping greenhouse gas (GHG) emissions low is directly attributable to our ability to make locally tailored renewable energy decisions that allow communities to determine for themselves the most effective path to meeting the state's renewable energy targets that reflects the unique meteorological, geographical, and demographical aspects of our communities. To that end, each NCPA member community has formally adopted aggressive RPS targets, and are in most instances are already exceeding the state average RPS numbers. Collectively, NCPA members are already above the 20`?,o RPS threshold, and many individual NCPA member utilities already have California -eligible KPS levels that exceed a 33% threshold. The ability of California's pubic power utilities, including NCPA's members, to create community -specific RPS programs has resulted in publicly owned utilities making greater progress toward achieving the state's rcnewahle energy and G H G reduction goals – at lower cost to electricity consumers –than would be possible with a "one -size -fits -all" mandate. Each community -owned public utility is unique, and we see this great diversity is an asset to the state's effort to maximize the use of renewable energy to help achieve the state's overall goal of reducing G H G emissions. Northern California's public power systems and their governing boards are committed to doing their part to meet the energy needs of their communities as well as those of the State of California. Both collectively and individually,NCPA's members —through aggressive and forward-loolung energy efficiencyprograms and new continuing investment in renewable energy sources — are leading the way in meeting the goals of AB 32. We look forward to continuing our work with you and your office to achieve these goals. sincerely