The URL can be used to link to this page

Home My WebLink AboutResolutions - No. 2010-217RESOLUTION NO. 2010-217 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE INTERIM AGREEMENT FOR NORTHERN CALIFORNIA POWERAGENCY GEOTHERMAL PROJECTS NUMBERS 2 AND 3 TRANSFERS OF RENEWABLE ENERGY CERTIFICATES (RECS) AND AUTHORIZING EXECUTION BY THE CITY MANAGER AND ADMINISTRATION BY ELECTRIC UTILITY DIRECTOR WITH AUTHORITY TO SELL RECS UNDER THE DIRECTION OF THE RISK OVERSIGHT COMMITTEE ------------------------------------------------------------------------ ------------------------------------------------------------------------ WHEREAS, the City of Lodi Electric Utility Department (EUD) is a participant in the Northern California Power Agency (NCPA) Geothermal'Projects Numbers 2 and 3 (Project); and WHEREAS, the Renewable Energy Certificates (RECs) associated with the Project are currently held by NCPA and in order to transfer the RECs belonging to the City a transfer agreement between NCPA and the City is required; and WHEREAS, NCPA has not developed a permanent policy regarding the transfer of RECs to NCPA project participants, therefore an interim agreement was approved by the NCPA Commission on October 28, 2010, for the transfer of RECs from August 2010 through December 2010 for the Project. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the Interim Agreement for NCPA Geothermal Projects Numbers 2 and 3 Transfers cf Renewable Energy Credits as attached; and BE IT FURTHER RESOLVED that the City Manager or his designee is hereby authorized and directed to execute said agreement; and BE IT FURTHER RESOLVED that the Electric Utility Director or her designee is hereby authorized to administer said agreement; and BE IT FURTHER RESOLVED that the Electric Utility Director or her designee is hereby authorized to sell RECs under the direction of the Risk Oversight Committee. Dated: December 15, 2010 ------------------------------------------------------------------------ ------------------------------------------------------------------------ hereby certify that Resolution No. 2010-217 was passed and adopted by the City Council of the City cf Lodi in a regular meeting held December 15, 2010, by the following vote: AYES: COUNCIL MEMBERS — Hansen, Mounce, Nakanishi, and MayorJohnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Katzakian ABSTAIN: COUNCIL MEMBERS — Non qNDf1J O�H City Clerk 2010-217 INTERIM AGREEMENT FOR NCPA GEOTHERMAL PROJECTS NUMBERS 2 AND 3 TRANSFERS OF RENEWABLE ENERGY CERTIFICATES Participant: City afLodi Period: Entire months of August through December2010 1. NCPA is in the process of developing a permanent policy regarding the transfer of Renewable Energy Certificates ("RECs")from NCPA projects to project participants. Participantand NCPA agree that the terms and conditions of this interim letter agreement ('Agreement") are made solely for the purpose of facilitating the transfer of a limited set of RECs priorto the adoption of a permanent policy and associated "PermanentTransfer Agreement" regarding the transfer of RECs from NCPAto project participants. The terms and conditionsof this Agreement are specific to this Agreement and have no precedentialvalue as to the development of the terms or conditions that are ultimately included in the permanent policy or associated "Permanent TransferAgreement". 2 Participant has a Project Entitlement Percentage d [Insert Project Participation Percentage]of the Project Capacity and Energy from NCPA Geothermal Projects Numbers 2 and 3 ("Project"). Project Capacity and Energy includes, but is not limited to, all renewable and environmental attributes associated with the production of electricity from a renewable energy resource, commonly referred to as Renewable Energy Certificates("RECs"). 3. Participant hereby requests NCPA and NCPA agrees to electronically transfer into Participant's Western Renewable Energy Generation Information System ("WREGIS") account its pro -rata share, in whole megawatts, based on Project Entitlement Percentage, of the WREGIS certificates attributable to the generation of the Project for the time period specified above. 4. Such transfer shall be evidenced by the transfer of the Project RECs as electronically recorded in NCPA's VREGIS" account to the WREGIS account tithe Participant. NCPA acknowledgesthat Participanthas provided NCPAwith documentation of the Participant's WREGIS account. Should any regulatory or other entity require additional or alternate means to evidence the transfer of the Project RECs to the Participant, NCPA will cooperate to meet that entity's requirements. 5. NCPA agrees that the Participant owns all rights and title to its pro -rata share of Project RECs based on its Project Entitlement Percentage, and such rights and title are transferable and available for resale by the Participant. NCPAfurther agreesthat, unless directed by the Participantin writing, it will not sell to third parties the Participant's pro -rata share of the Project RECs. 6. Participant agrees to pay for its proportionate share of NCPA's costs to carry out NCPA's REC transfer process for the Project (including WREGIS registration fees and certificate transfer costs) for the above time period. 7. Participant agrees to reimburse NCPA for NCPA's reasonable costs to respondto any investigation by WREGIS, CPUC, or any other regulatoryor enforcement agency havingjurisdiction as to the validity of any transferred Project REC under this letter agreement by NCPAto Participant, If more than the Participant's Project REC transfers are being investigated, NCPA agrees that all such costs shall be proportionately allocated among the Project REC transfer participants based upon the total number of Project RECs under investigation, 8. Participant agrees to reimburse NCPA for NCPA's reasonable costs of responding to any claim brought by a non- regulatory/non-enforcement third partyconceming the Project RECs transferred underthis letter agreementfrom NCPAto Participant. NCPA agrees that the Participantshall be in charge of the defense of any such claim if the Participantso elects. 9. IFany Project REC transferred by NCPAto the Participant is later determined by WREGIS, CPUC, or any other regulatoryor enforceable agency havingj u risd iction to be invalid or inaccurate for any reason, including, but not limited to, revised meter data, Qualified Reporting Entity("QRE") errors or WREGIS errors, Participant agrees to remedy the problem at 10. Participant's expense. NCPA agrees that the Participantshall be in charge of remedying the problem if the Participantso elects unless the problem also involves other participants, in which case, the affected participantsshall be responsiblefor remedying the problem. If the invalidityor inaccuracy was caused by an error by NCPA, then NCPA agrees to remedythe problem at NCPAs expense as a Project cost. Costs and losses caused by any error committed by NCPA, net of any applicable insurance, maybe allocated byNCPA to all participants in NCPAsREC transfer processfor the Project inthe same manner as the costs are allocated to all participants pursuant to Section 6 above. 11. Participant agrees not to transfer, assign, sell or exchange any Project RECs, directly or indirectly, in any manner, and shall not take or permit to betaken any other action or actions, which would result in any of the Project Bonds being treated as an obligation not described in Section 103(a) of the Internal Revenue Code of 1954, as amended, by reason ofclassification of such Bond as an "industrial development bond within the meaning of Section 103(b) of said Code. 12. NCPA makes no representationsas to whether the Project RECs qualify for or meet any renewable portfolio standards, renewable energy standards, or any other renewable type standard. NCPA is making the Project RECs available AS 1S, ft is the Participant's responsibilityto verify whether the Project RECs wiH qualify for California, Federal, or other renewable requirements. Approved: Approved: Konradt Bardam, City Manager James H. Pope, General Manager Date Approved as to Form: wabauer, CityAttomey ATTEST: Randi Johl, City Clerk Date Project Participant Project Percentage Alameda 16.8825% Biggs 0.2270% Gridley 0.3360% Healdsburg 3.6740% Lodi 10.2800% Lompoc 3.6810% Palo Alto Plumas Sierra 0.7010% Roseville 7.8830% Santa Clara 44.3905% Turlock 6.3305% Ukiah 5.6145% 100.0000%