HomeMy WebLinkAboutResolutions - No. 2011-102RESOLUTION NO. 2011-102
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING THE NORTHERN CALIFORNIA POWER
AGENCY RENEWABLE ENERGY CERTIFICATES TRANSFER
AGREEMENT AND AUTHORIZING EXECUTION BY THE CITY
MANAGERWITH ADMINISTRATION BYTHE ELECTRIC
UTILITY DIRECTOR
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WHEREAS, Lodi is a member of Northern California Power Agency (NCPA), and
has full and unfettered rights and title to its Project Entitlement Percentage of the
Capacity and Energy attributable to NCPA project generation, as specified in the
respective NCPA Project Agreements; and
WHEREAS, such 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, including Renewable Energy Certificates (RECs); and
WHEREAS, Lodi is also eligible to receive RECs made available to the
customers of the Western Area Power Administration's Sierra Nevada Region
("Western") attributable to Western Base Resource hydroelectric generation; and
WHEREAS, NCPA has established an account with the Western Renewable
Energy Generation Information System (WREGIS), and has been, and will continue to
be, issued RECs by WREGIS sourced from NCPA's Registered Generating Units; and
WHEREAS, such RECs are initially issued to and are held by NCPA in its
WREGIS account; and
WHEREAS, NCPA may, on behalf of Lodi, be transferred RECs from Western
attributable to Lodi's share of Western Base Resource hydroelectric generation,
consistent with Lodi's assignment of its Western Base Resource percentage to NCPA;
and
WHEREAS, Lodi may utilize RECs to satisfy its compliance with renewable
energy standards, and RECs may have certain monetary value; therefore, it is in the
interest of Lodi to request NCPA to transfer Lodi's share of RECs attributable to its
Project Entitlement Percentage of NCPA project generation and Western Base
Resource hyd roel ectri c generation held by NCPA to Lodi; and
WHEREAS, in order for NCPA to transfer to Lodi its share of RECs held in
NCPA's WREGIS account, Lodi is required to 1 >xecute the Renewable Energy
Certificates Transfer Agreement with NCPA and 2) establish an account with WREGIS;
and
WHEREAS, the Renewable Energy Certificates Transfer Agreement solely
provides for the transfer of RECs and does not include services from NCPA to sell or
market RECs on behalf of Lodi; and
WHEREAS, by executing the Renewable Energy Certificates Transfer
Agreement, City agrees not to transfer, assign, sell, or exchange any RECs sourced
from NCPA project generation, directly or indirectly, in any manner, and shall not take or
permit to be taken any other action or actions, which would result in any of the bonds
supporting NCPA project generation in being treated as an obligation not described in
Section 103(a) of the Internal Revenue Code of 1954, as amended; and
WHEREAS, the Renewable Energy Certificates Transfer Agreement is structured
so that Lodi accepts a limited insurance based recourse against NCPA, and includes the
option that Lodi may procure additional insurance at its sole expense; and
WHEREAS, the fiscal impact to Lodi for executing the Renewable Energy
Certificates Transfer Agreement includes costs resulting from REC transfer fees, direct
costs associated with the management and transfer of RECs, NCPA management costs
set forth in NCPA's then current Annual Budget, and any other reimbursable expenses
incurred by NCPA in performing services on behalf of Lodi pursuant to the Renewable
Energy Certificates Transfer Agreement.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the NCPA Renewable Energy Certificates Transfer Agreement, and further
authorize execution by the City Manager with administration by the Electric Utility
Director.
Dated: July 6, 2011
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hereby certify that Resolution No. 2011-102 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held July 6, 2011, by the following
vote:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, and
Mayor Johnson
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS— Nakanishi
ABSTAIN: COUNCIL MEMBERS— None
1Di JO5—
City Clerk
2011-102