HomeMy WebLinkAboutResolutions - No. 2003-71RESOLUTION NO. 2003-71
A RESOLUTION OF THE LODI CITY
COUNCIL APPROVING THE RENEWABLE
ENERGY PORTFOLIO STANDARD (RPS)
FOR THE CITY OF LODI ELECTRIC UTILITY
WHEREAS, Senate Bill 1078 was signed into law September 12, 2002; and
WHEREAS, this law defines qualified renewable energy resources and sets forth
the following RPS for retail electric sellers other than municipal utilities:
(A) 20% of retail sales must be supplied by renewable resources by
December 31, 2017; and
(B) Retail sellers must increase renewable supply by at least 1% per
year until the 20% target is reached.
WHEREAS, as a municipal electric utility, the Lodi Electric Utility is excluded
from the Senate Bill, although the following requirements are mandatory:
1) Each municipal governing board is responsible for implementing
and enforcing a local RPS that recognizes the Legislature's intent
to encourage renewable resources, taking into consideration the
effect on rates, reliability, financial resources, and the goal of
environmental improvement.
2) Each municipal utility must report annually to its customers:
A) Expenditure of public benefits funds collected for
renewable energy resource development; and
B) The resource mix by fuel type including each type of
renewable resource.
WHEREAS, each municipal utility governing board must define the terms of its
RPS. This would include determination of:
A) What qualifies as a renewable resource (whether, or not to include
large hydro projects); and
B) The percentage of the total energy resources that are to be
renewable; and
C) How quickly you plan to meet that goal.
WHEREAS, the City of Lodi currently receives approximately 48% of its power
from renewable resources. More than 25% comes from the Northern California Power
Agency (NCPA) geothermal plants, which are "eligible" renewable resources as defined
in the California Public Utilities Code. Approximately 21 % of Lodi's power supply comes
from "large" hydroelectric facilities. The large hydroelectric projects combine water
usage and electric power production in an environmentally sound manner. Hydroelectric
power generation is certainly a renewable resource, and to the extent that environmental
impacts are minimized and/or mitigated, staff believes that this resource should be
included as contributing to a renewable portfolio. Staff also feels that the 30 MW
limitation on hydro adopted by the State of California is arbitrary. For these reasons, it
is recommended that Lodi's RPS be established to include large hydroelectric
generation; and
WHEREAS, the stated intent of the subject legislation is to "encourage
renewable resources." Staff believes that Lodi has already more than met that goal: it
has succeeded in the development of renewable resources, supplying approximately
48% of its power from such resources while retaining competitive rates; and
WHEREAS, because of the uncertainty associated with the development of new
generating sources, staff recommends that the renewable portfolio standard adopted by
the City Council not be unduly restrictive or aggressive. It is recommended that the
renewable portfolio goal be to provide in excess of 20% of Lodi's power supply mix from
renewable resources, including large hydroelectric facilities.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the City of Lodi's Electric Utility Renewable Portfolio Standard (RPS), attached
hereto marked Exhibit "A."
Dated: April 16, 2003
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I hereby certify that Resolution No. 2003-71 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 16, 2003, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hansen, Howard, Land, and
Mayor Hitchcock
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKSTON
City Clerk
2003-71
EXHIBI-Fl.. A
City of Lodi Electric UdRy Renewable PorhWio Standard (RPS)
RPS Objective:
Meet the intent of Senate Bill 1078 to encourage renewable resources.
Lodi's Qualified RPS Resources are defined as non-fossil fueled electric generating
resources, including all hydroelectric resources:
• Geothermal
• Hydroelectric
Lodi's RPS Target:
Lodi's power mix will have a minimum of 20% of renewable resources. Renewable
resources are defined as non-fossil fueled electric generating resources, including
hydroelectric.
Reporting RPS Performance:
Pursuant with SB 1078, Lodi Electric Utility will report in the annual power content label
to be distributed to all Lodi Electric Utility customers:
• Expenditure of Public Benefit funds collected for renewable energy resource
development.
• The resource mix by fuel type of renewable resources.
Ongoing Review:
Lodi Electric Utility will regularly address changes in our power portfolio and potential
changes in the renewable energy technologies.