HomeMy WebLinkAboutResolutions - No. 2013-207RESOLUTION NO. 2013-207
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE
REVISED CITY OF LODI RENEWABLES PORTFOLIO STANDARD
PROCUREMENT PLAN AND ENFORCEMENT PROGRAM
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WHEREAS, on April 12, 2011, Senate Bill SBX1-2 was signed into law that modified the
State's Renewables Portfolio Standard (RPS) requirements in addition to setting forth new
requirements applicable to Publicly Owned Utilities (POUs); and
WHEREAS, pursuant to Public Utilities Code, Section 399.30(a) and 399.30(e), POUs must
adopt and implement a renewable energy resources procurement plan (RPS Procurement Plan) and
a program for the enforcement of the RPS Procurement Plan (RPS Enforcement Program) and
update these documents as appropriate; and
WHEREAS, on December 11, 2011, by Resolution 2011-195, the City Council adopted its
RPS Enforcement Program; and
WHEREAS, on December 19, 2012, by Resolution 2012-206, the City Council adopted its
RPS Procurement Plan; and
WHEREAS, as a result of the California Energy Commission's (CEC) adoption of
regulations that became effective October 1, 2013, the City proposes to adopt a Revised City of Lodi
Renewables Portfolio Standard Procurement Plan and Enforcement Program (Revised Plan); and
WHEREAS, the Revised Plan has been prepared and will be implemented in accordance
with all applicable RPS regulations including, but not limited to: 1) Identification of Compliance
Periods, Procurement Targets, Content Categories; 2) Rules for application of Historic Carryover
and Excess Procurement; 3) Provisions that address a demonstration of reasonable progress;
4) Conditions for delaying timely compliance and employment procedures for a Waiver of Timely
Compliance; and 5) Procedures for addressing cost limitations; and
WHEREAS, review and implementation of the Revised Plan will be conducted by the Electric
Utility (EU), through the City's Risk Oversight Committee, on an annual basis.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby rescind
Resolutions 2011-195 and 2012-206 and approves the City of Lodi Renewables Portfolio Standard
Procurement Plan and Enforcement Program (Revised Plan) and authorizes the EU, through the
Risk Oversight Committee, to implement the Revised Plan.
Dated: November 20, 2013
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I hereby certify that Resolution No. 2013-207 was passed and adopted by the City Council of
the City of Lodi in a regular meeting held November 20, 2013, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, Mounce, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NDI J L-OLSON
City Clerk
2013-207
Exhibit A City of Lodi
Revised RPS Procurement Plan and Enforcement Program
November 20, 2013
CITY OF LODI
REVISED RENEWABLES PORTFOLIO STANDARD
PROCUREMENT PLAN AND ENFORCEMENT PROGRAM
1.0 INTRODUCTION AND PURPOSE
Senate Bill X1-2 (SB X1-2) of the first extraordinary session was chaptered into the Public
Utilities Code (PUC) §399 by Governor Jerry Brown. Under SB X1-2 the City of Lodi (City), a
publicly owned utility, must adopt and implement a Procurement Plan in accordance with the
Renewables Portfolio Standard (RPS) guidelines as adopted by the California Energy
Commission (CEC) to reach and maintain a renewable energy content of 33 percent of Retail
Sales' by the end of calendar year 2020. At the end of calendar year 2012, the City was
compliant with the energy purchase requirements of SB X1-2. The City's RPS Procurement Plan
was approved by Lodi City Council Resolution 2012-206 on December 19, 2012.
This document outlines the requirements of SB X1-2 and the City's minimum requirements for
the procurement of renewable energy. In addition to the development of an RPS Procurement
Plan, SB X1-2 requires the City to adopt and implement a separate program for the
enforcement of the RPS Procurement Plan.2 The City's RPS Enforcement Program was approved
by Lodi City Council Resolution 2011-195 on December 21, 2011. This Revised RPS Procurement
Plan and Enforcement Program (RPS Plan) combines and replaces the two previously adopted
documents and is effective November 20, 2013.
With all future resource needs, the City's Electric Utility (EU), through the Risk Oversight
Committee, shall apply this document, as approved by the City Council, to assure that the City's
retail electric customers are provided at least a minimum quantity of electricity products from
eligible renewable energy resources and products consistent with the targets set by SB X1-2.
1.1 PLAN MODIFICATIONS/AMENDMENTS
This RPS Plan may be modified or amended by an affirmative vote of the Lodi City Council
during a publicly noticed meeting. Before the Lodi City Council publicly deliberates on any
1 "Retail Sales" means sales of electricity by a local publicly owned electric utility (POU) to end-use customers and
their tenants measured in megawatt hours (MWh). This does not include energy consumption by a POU, electricity
used by a POU for water pumping, or electricity produced for onsite consumption (self -generation).
2 Pursuant to PUC §399.30(e), POUs must have adopted a "program for enforcement" of the RPS Procurement
Plan on or before January 1, 2012 at a publicly noticed meeting.
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portion of the RPS Plan, a notice of a public meeting must be posted in accordance with the
requirements of the PUC and/or applicable sections of the Government Code.
Contemporaneous with the posting of a notice for such a meeting, the City shall notify the CEC
of the date, time, and location of the meeting in order to enable the CEC to post the
information on its website. When City staff present information to a majority of the City Council
that relates to the adopted RPS Plan, this information shall also be made available to the public
and the CEC through the electronic posting of the documentation.
1.2 PROCUREMENT REQUIREMENTS FOR RENEWABLE ENERGY
SB X1-2 created several very specific requirements for the procurement of renewable energy
for the resale to electric customers. This document details the procurement requirements of SB
X1-2 and adopts these requirements as minimum standards for the City's procurement of retail
energy.
1.3 COMPLIANCE PERIODS (PUC §399.30(b))
The amendment of SB X1-2 created three distinct Compliance Periods. At the end of each
Compliance Period, a specific target for renewable energy must be met unless "waivers of
timely compliance" are incurred. Each of the Compliance Periods includes the following: 1) the
Retail Sales percentage target for renewable energy; and 2) the allowed percentage from each
Content Category.
A. Compliance Period 1: January 1, 2011, to December 31, 2013, inclusive.
The City must procure by the end of Compliance Period 1, renewable energy at
least equal to an average of 20 percent of Retail Sales, over the three calendar
years. Renewable energy procured for this Compliance Period shall be comprised of
not less than 50 percent of Content Category 1 and not more than 25 percent from
Content Category 3.
B. Compliance Period 2: January 1, 2014, to December 31, 2016, inclusive.
The City must procure, by the end of Compliance Period 2, renewable energy at
least equal to the sum of 20 percent of calendar year 2014 Retail Sales, 20 percent
of calendar year 2015 Retail Sales, and 25 percent of 2016 Retail Sales. Renewable
energy procured for this Compliance Period shall be comprised of not less than 65
percent of Content Category 1 and not more than 15 percent from Content
Category 3.
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C. Compliance Period 3: January 1, 2017, to December 31, 2020, inclusive.
The City must procure, by the end of Compliance Period 3, renewable energy at
least equal to the sum of 27 percent of calendar year 2017 Retail Sales, 29 percent
of calendar year 2018 Retail Sales, 31 percent of calendar year 2019 Retail Sales,
and 33 percent of calendar year 2020's Retail Sales renewable energy procured for
this Compliance Period shall be comprised of not less than 75 percent of Content
Category 1 and not more than 10 percent from Content Category 3.
For each calendar year ending December 31, 2021 and each calendar year thereafter, the City
must procure electricity products sufficient to meet or exceed 33 percent of its Retail Sales by
the end of that year. Renewable energy procured for each calendar year shall be comprised of
not less than 75 percent of Content Category 1 and not more than 10 percent from Content
Category 3.
1.4 REASONABLE PROGRESS TOWARDS MEETING COMPLIANCE PERIOD TARGETS DURING
INTERVENING YEARS (PUC §§399.30(c)(1) and (2))
A. By December 31, 2014, the City shall demonstrate that it is making reasonable
progress towards ensuring that it shall meet Compliance Period 2 requirements
by 2016.
B. By December 31, 2015, the City shall demonstrate that it is making reasonable
progress towards ensuring that it shall meet Compliance Period 2 requirements
by 2016.
C. By December 31, 2017, the City shall demonstrate that it is making reasonable
progress towards ensuring that it shall meet Compliance Period 3 requirements
by 2020.
D. By December 31, 2018, the City shall demonstrate that it is making reasonable
progress towards ensuring that it shall meet the Compliance Period 3
requirements by 2020.
E. By December 31, 2019, the City shall demonstrate that it is making reasonable
progress towards ensuring that it shall meet Compliance Period 3 requirements
by 2020.
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1.5 CONTENT CATEGORY DEFINITIONS (PUC §399.30(c)(3))
As required by the PUC, each Compliance Period shall further restrict the procurement of
energy through the concept of Portfolio Content Categories (PCCs) (sometimes referred to as
energy buckets) that describe the criteria for differing eligible renewable energy resource
electricity products:
A. PCC 1(consistent with PUC §399.16(b)(1)): Resources in this category shall
either:
(1) Have a first point of interconnection with a California balancing authority,
have a first point of interconnection with distribution facilities used to serve
end users within a California balancing authority area, or are scheduled from
the eligible renewable energy resource into a California balancing authority
without substituting electricity from another source. The use of another
source to provide real-time ancillary services required to maintain an hourly
or sub -hourly import schedule into a California balancing authority shall be
permitted, but only the fraction of the schedule actually generated by the
eligible renewable energy resource shall count toward this PCC.
(2) Have an agreement to dynamically transfer electricity to a California
balancing authority.
B. PCC 2 (consistent with PUC §399.16(b)(2)): Resources in this category shall
include firmed and shaped eligible renewable energy resource electricity
products providing incremental electricity and scheduled into a California
balancing authority.
C. PCC 3 (consistent with PUC §399.16(b)(3)): Resources in this category shall
include eligible renewable energy resource electricity products, or any fraction of
the electricity generated, including unbundled renewable energy credits, that do
not qualify under the criteria of PCC 1 or PCC 2.
D. Grandfathered Resources (PUC §399.16(d)): Any contract or ownership
agreement originally executed prior to June 1, 2010, shall count in full towards
the procurement requirements, if all of the following conditions are met:
(1) The renewable energy resource was eligible under the rules in place as of the
date when the contract was executed.
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(2) Any contract amendments or modifications occurring after June 1, 2010, do
not increase the nameplate capacity or expected quantities of annual
generation, or substitute a different renewable energy resource.
(3) The duration of the contract may be extended if the original contract
specified a procurement commitment of fifteen (15) or more years.
(4) "Eligible renewable energy resource" means an electrical generating facility
that meets the definition of a "renewable electrical generation facility" in
§25741 of the Public Resources Code, subject to the following: A facility
approved by the governing board of a local publicly owned electric utility
prior to June 1, 2010, for procurement to satisfy renewable energy
procurement obligations adopted pursuant to former PUC §387, shall be
certified as an eligible renewable energy resource by the CEC pursuant to this
article, if the facility is a "renewable electrical generation facility" as defined
in §25741 of the Public Resources Code and PUC §399.12(e)(1)(C).
Resources procured prior to June 1, 2010 shall be counted for RPS compliance (Grandfathered)
without regard to the limitations on the use of each PCC as described above.
1.6 QUALIFYING CONDITIONS OF COMPLIANCE
Provisions of SB X1-2 allow the adoption of Optional Compliance Measures for Excess
Procurement, Historic Carry-over and for unforeseen circumstances beyond the control of the
City. The section below details the conditions of these Optional Compliance Measures allowed
by the amendments of SB X1-2.
A. Excess Procurement (PUC §399.30(d)(1), PUC §399.13(a)(4)(B))
The City shall be allowed to apply Excess Procurement from one Compliance Period
to subsequent Compliance Periods as long as the following conditions are met:
(1) The accumulation of excess procurement of a Compliance Period beginning
on or after January 1, 2011, can be applied to any subsequent Compliance
Period.
(2) In calculating the total quantity of excess procurement, the amount of
procurement associated with contracts of less than ten (10) years in duration
shall be deducted (not counted) from actual procurement quantities.
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(3) Excess procurement applied to future Compliance Periods must comply with
the definitions of PCC 1, PCC 2, or Grandfathered Resources.
(4) Resources from PCC 3 shall not be counted as excess procurement.
B. Historic Carry-over
(1) The City shall be allowed to apply historic carry-over, generated before
January 1, 2011, procured prior to June 1, 2010, and was not applied to the
RPS program established by the City pursuant to former PUC §387.
(2) Historic carry-over must be from facilities that were RPS -eligible under the
rules in place for retail sellers at the time of procurement, except that such
facilities need not be tracked in the Western Renewable Energy Information
System (WREGIS).
(3) Historic carry-over shall be calculated by subtracting procurement generated
between January 1, 2004 and December 31, 2010, that was applied to the
City's RPS compliance obligation. during that same period.
(4) The City will submit claims for any historic carry-over to the CEC by
December 31, 2013.
C. Waiver Of Timely Compliance PUC §399.30(d)(2), PUC §399.15(b)(5))
Under the concept of "Waiver of Timely Compliance," enforcement of timely
compliance shall be waived if it can be demonstrated that any of the conditions
described in the PUC or any condition beyond the direct control of the City will
prevent timely compliance. In making its findings relative to the existence of this
condition, deliberations shall include only conditions within the direct control of the
City and consistent with the applicable PUC.
In the event of a Waiver of Timely Compliance due to any of the factors set forth
above, the City may implement one or more of the following procedures:
(1) Establish additional reporting for intervening years to demonstrate that
reasonable actions under the City's control are being taken (PUC
§399.15(b)(6)).
(2) Require a demonstration that all reasonable actions within the City's control
have been taken to ensure compliance in order to grant the waiver (PUC
§399.15(b)(7)).
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As described in the PUC §399.15(b)(9), in no event shall deficits from prior
Compliance Periods be added to future Compliance Periods. However, excess
procurement from previous years may be used to gain compliance due any of the
unforeseen conditions allowing waiver of timely compliance.
D. Cost Limitations For Expenditures (PUC §399.30(D)(3), PUC §399.15(C))
The City, at its sole discretion, may elect to establish cost limitations for all eligible
renewable energy resources used to comply with the RPS. Any such cost limitations
will be developed consistent with PUC §399.15(c) and PUC §399.15(d).
(1) In adopting these rules, the City shall rely on this RPS Plan, as well as: 1)
procurement expenditures that approximate the expected cost of building,
owning, and operating eligible renewable energy resources; and 2) the
potential that some planned resource additions may be delayed or cancelled.
(2) In addition to PUC §399.15(c), the City may take into account local and
regional economic conditions and the ability of the City's customers to afford
produced or procured energy products. These economic conditions may
include, but are not limited to, unemployment, wages, cost of living
expenses, the housing market, and cost burden of other utility rates on the
same customers. The City may also consider cost disparities between
customer classes within the City, and between the City customers and other
POU and investor owned utility (IOU) customers in the region.
(3) The City shall review the need for cost limitations as part of the annual review
process described in this RPS Plan.
1.7 EXCLUSIVE CONTROL (PUC §399.30(m))
In all matters regarding compliance with the RPS Plan, the Lodi City Council shall retain
exclusive control and discretion over the following; the mix (type) of eligible renewable energy
resources procured, additional generation resources procured for purposes of ensuring
resource adequacy and reliability, and the reasonable costs incurred for eligible renewable
energy resources owned by it.
1.8 REPORTING REQUIREMENTS (PUC §399.30(f), PUC §399.30(g), PUC §399.30(1))
As required by the PUC, POUs must provide periodic reporting on their progress and status of
compliance with the legislated renewable energy requirements. The following sections outline
these requirements and the applicable PUC.
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A. Deliberations Or Changes Regarding RPS Plan (PUC §399.30(F))
Before the Lodi City Council publicly deliberates on any portion of the RPS Plan, a
notice of a public meeting must be posted in accordance with the requirements of
the PUC. Contemporaneous with the posting of a notice for such a meeting, the City
shall notify the CEC of the date, time, and location of the meeting in order to enable
the CEC to post the information on its website. When City staff present information
to a majority of the City Council that relates to the adopted RPS Plan, this
information shall also be made available to the public and the CEC through the
electronic posting of the documentation.
B. Compliance Reporting (CEC RPS Regulations §3207)
(1) Annual Reports — Beginning with Compliance Year 2013: by July 1 for each
year, the City shall submit an annual report to the CEC that includes the
information as specified below for the prior calendar year. The report
submitted in 2013 shall include information as specified below for both the
2011 and 2012 calendar years. The format for the annual report shall be
specified by the CEC, but the information contained in the annual report may
be combined with other existing reports that contain the same information
and are also supplied to the CEC. If the annual report refers to information
provided to the CEC through existing reports, the annual report shall
reference the information by identifying the name, submittal date, and page
number of the existing report. Included in the report will be the following:
(a) Identifying information, including:
i. POU name, contact name, mailing address, phone number, and
e-mail address.
ii. Year the City's electric utility was established.
iii. Number of end-use retail customer accounts in the City.
(b) RPS annual progress information for the prior calendar year, including:
i. Amount of total Retail Sales to end-use customers, in MWh, and
projected Retail Sales for the current compliance period.
ii. Amount of procured electricity products retired, in MWh.
iii. WREGIS compliance report for procurement claims in the prior
calendar year. For any procurement claims not tracked through
WREGIS as permitted by the RPS Regulations, the City shall report
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procurement claims using the interim tracking system established
by the CEC prior to the implementation of WREGIS.
iv. An initial, nonbinding classification of retired electricity products
qualifying for each portfolio content category or qualifying to count
in full in accordance with RPS Regulations §3202(a)(2).
v. A description of each of the eligible renewable energy resources
with which the City has executed contracts or ownership
agreements during the prior year, including but not limited to the
contracted amount of MWh, the contracted amount of MWh as a
percentage of Retail Sales, resource fuel type, the execution date of
the procurement contract or ownership agreement, the duration of
the procurement contract or ownership agreement, a summary of
the procurement contract or ownership agreement, the operational
status of the resource, the date the resource came on-line, the date
the resource came on-line using a renewable fuel or technology, if
different, the date on which procurement of electricity products
begins, if different, RPS certification status, the county, state, and
country in which the resource is located, and a summary of the
resource names and identification numbers.
vi. Documentation demonstrating the PCC classification claimed for
procured electricity products. This documentation may include
interconnection agreements, NERC a -Tag data, scheduling
agreements, firming and shaping agreements, and electricity
product contract information.
vii. An explanation of any public goods funds collected for eligible
renewable energy resource development, including a description of
programs, expenditures, and expected or actual results.
viii. A description of any identified issues that occurred that have the
potential to delay timely compliance with the RPS procurement
requirements defined in RPS Regulations §3204, and planned
actions to minimize the delay of timely compliance. Such issues may
include, but are not limited to, inadequate transmission to allow for
procurement to be delivered from eligible renewable energy
resources, permitting, interconnection, or other circumstances that
have delayed the procurement from eligible renewable energy
resources, unanticipated curtailment of a contracted or owned
eligible renewable energy resource, and higher-than-expected costs
for the procurement or development of eligible renewable energy
resources.
ix. An attestation, signed by an authorized agent, affirming that the
information provided in the report is true and correct.
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(c) Actions taken by the City demonstrating reasonable progress toward
meeting its RPS procurement requirements. The information reported
shall include, but not be limited to, a discussion of the following actions
taken by the City during the prior calendar year:
i. Solicitations released to solicit bid for contracts to procure
electricity products from eligible renewable energy resources to
satisfy the City's RPS procurement requirements.
ii. Solicitations released to solicit bid for ownership agreements for
eligible renewable energy resources to satisfy the City's RPS
procurement requirements.
iii. Actions taken to develop eligible renewable energy resources to
satisfy the City's RPS procurement requirements, including initiating
environmental studies, completing environmental studies, acquiring
interests in land for facility siting or transmission, filing applications
for facility or transmission siting permits, and receiving approval for
facility or transmission siting permits.
iv. Interconnection requests filed for eligible renewable energy
resources to satisfy the City's RPS procurement requirements.
v. Interconnection agreements negotiated and executed for eligible
renewable energy resources to satisfy the City's RPS procurement
requirements.
vi. Transmission -related agreements negotiated and executed to
transmit electricity products procured from eligible renewable
energy resources to satisfy the City's RPS procurement
requirements.
vii. Other planning activities to procure electricity products from
eligible renewable energy resources.
(d) The City shall include a description of all actions planned in the current
calendar year to demonstrate progress towards achieving its RPS
procurement requirements.
(2) Compliance Period Reports — By July 1, 2014; July 1, 2017; July 1, 2021; and
by July 1 of each year thereafter, the City shall submit to the CEC a
compliance report that addresses the reporting requirements of the previous
section and the following information for the preceding compliance period.
(a) Classification per RPS -eligible facility of the amount of procurement
qualifying for each PCC and procurement that shall count in full.
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(b) The City's RPS procurement target for the compliance period, in MWh.
(c) The amount of excess procurement, in MWh, from previous compliance
periods, if any, and historic carry-over, if any, that the City is applying to
the compliance period.
(d) The amount of procurement retired, in MWh, that the City wishes to
claim toward the RPS procurement target for calculating the portfolio
balance requirements.
(e) The amount of excess procurement, in MWh, for the compliance period,
if any, that may be applied toward future compliance periods.
(f) If the compliance report indicates that the City's RPS procurement
requirements were not met, the City shall provide documentation to
justify the application of any optional compliance measures adopted in
accordance with this RPS Plan. The documentation shall include all
reports, analyses, proposed findings, and any other information upon
which the City relied in applying the measure. The City shall also submit
an updated enforcement program and/or procurement plan that includes
a schedule identifying potential sources of electricity products currently
available or anticipated to be available in the future for meeting the
shortfall.
(g) If the City applies adopted cost limitation measures, it shall report that
cost limitation to the CEC in dollars spent during the compliance period.
The City shall also provide the CEC with an estimate of the total cost to
procure sufficient electricity products to meet its RPS procurement
requirements for the preceding compliance period. A report on actions
taken in response to RPS procurement expenditures meeting or
exceeding the cost limitation shall also be provided.
C. Reports to the CEC and City Customers (PUC §399.30(1))
Annually, the City will provide information to the CEC and customers regarding
renewable resources. The information to the CEC regarding renewable resources
shall include each of the following components:
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(1) Expenditures of public goods funds collected pursuant to PUC §385 for
eligible renewable energy resource development, including a description of
programs, expenditures, and expected or actual results.
(2) The resource mix used to serve its customers by energy source type.
(3) The City's status in implementing and/or maintaining the renewable portfolio
standards pursuant to PUC §399.30(a).
2.0 PROGRAM FOR ENFORCEMENT OF THE RPS PROCUREMENT PLAN
A. The City shall have a program for the enforcement of the RPS Procurement Plan,
which shall include all of the provisions, set forth herein and shall be included in the
City's RPS Plan.
B. Annual review of the RPS Procurement Plan shall include consideration of each of
the following elements:
(1) By December 31, 2013 (end of Compliance Period 1):
(a) Verify that the City has met an average of 20 percent of Retail Sales with
eligible renewable resources from the specified PCCs for the period
January 1, 2011 to December 31, 2013.
(b) If targets are not met, the City must:
i. Ensure that any Waiver of Timely Compliance was compliant with
the provisions in the RPS Plan.
ii. Review the applicability and appropriateness of excusing
performance based on the Cost Limitations on Expenditures
provisions of the RPS Plan.
(2) By December 31, 2014, ensure that the City is making reasonable progress
toward meeting the December 31, 2016 compliance obligation.
(3) By December 31, 2015, ensure that the City is making reasonable progress
toward meeting the December 31, 2016 compliance obligation.
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(4) By December 31, 2016 (end of Compliance Period 2):
(a) Verify that the City has met 25 percent of Retail Sales with eligible
renewable resources from the specified PCCs for the period ending
December 31, 2016.
(b) If targets are not met, the City must:
i. Review the applicability of applying Excess Procurement from
Compliance Period 1 consistent with the provisions of the RPS Plan.
ii. Ensure that any Waiver of Timely Compliance was compliant with
the provisions in the RPS Plan.
iii. Review applicability and appropriateness of excusing performance
based on the Cost Limitations on Expenditures provisions of the RPS
Plan.
(5) By December 31, 2017, ensure that the City is making reasonable progress
toward meeting the December 31, 2020 compliance obligation.
(6) By December 31, 2018, ensure that the City is making reasonable progress
toward meeting the December 31, 2020 compliance obligation.
(7) By December 31, 2019, ensure that the City is making reasonable progress
toward meeting the December 31, 2020 compliance obligation.
(8) December 31, 2020 (end of Compliance Period 3), and annually thereafter:
(a) Verify that that the City met 33 percent of Retail Sales with eligible
renewable resources from the specified PCCs, consistent with the RPS
Plan.
(b) If targets are not met, the City must:
i. Review the applicability of applying Excess Procurement from a
previous Compliance Period consistent with the provisions of the
RPS Plan.
ii. Ensure than any Waiver of Timely Compliance was compliant with
the provisions in the RPS Plan.
iii. Review applicability and appropriateness of excusing performance
based on the Cost Limitations on Expenditures provisions of the RPS
Plan.
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C. If it is determined that the City has failed to comply with the provisions of its RPS
Plan, the City Council shall take steps to correct any untimely compliance, including:
(1) Review the City's RPS Plan to determine what changes, if any, are necessary
to ensure compliance in the next Compliance Period.
(2) Report quarterly to the City Council regarding the progress being made
toward meeting the compliance obligatiori for the next Compliance Period.
(3) Report to the City Council regarding the status of meeting subsequent
compliance targets, and all steps being taken to ensure that the obligation is
timely met.
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CITY OF LODI
REVISED RENEWABLES PORTFOLIO STANDARD
PROCUREMENT PLAN AND ENFORCEMENT PROGRAM
EXECUTIVE SUMMARY
Background (Timeline of Significant Events)
• (2002) —SB 1078 defined initial Renewables Portfolio Standard (RPS) legislation (20% by 2017)
• (2006) — SB 107 accelerated RPS requirements (20% by 2010)
• (2011) — SB X1-2 expanded RPS requirements to cover Publicly Owned Utilities (POUs)
(33% by 2020)
• (2011) — Lodi RPS Enforcement Program adopted 12/21/11 (Resolution 2011-195)
• (2012) — Lodi RPS Procurement Plan adopted 12/19/2012 (Resolution 2012-206)
• (2013) — Regulations for POUs adopted by California Energy Commission (CEC) effective
10/1/2013
• (2013) — Annual Compliance Reports submitted for 2011 and 2012 to CEC 10/31/2013
• (2013) — Revised Procurement Plan and Enforcement Program by 11/27/2013
• (2013) — Reporting of Historic Carry-over by 12/31/13
Highlights Waior Changes)
• Combines Lodi RPS Enforcement Program and Procurement Plan into single document titled
"City of Lodi Revised Renewables Portfolio Standard Procurement Plan and Enforcement
Program"
• Defines "Retail Sales" as sales of electricity by a POU to end-use customers and their tenants,
not including energy consumption by a POU, electricity used by a POU for water pumping, or
electricity produced for onsite consumption (self -generation) as per CEC regulations.
• Identifies Compliance Periods and Targets
• Compliance Period 1 (2011-2013) — 20% over 3 years
• Compliance Period 2 (2014-2016) — 20% (2014), 20% (2015), 25% (2016)
• Must report reasonable progress toward meeting 2016 target
• Compliance Period 3 (2017-2020) — 27% (2017), 29% (2018), 31% (2019), 33% (2020)
• Must report reasonable progress toward meeting 2020 target
• Year 2021 and beyond — 33%
• Historic Carry-over Provisions
• HistoricCarry-over — Generated before 1/1/11; procured prior to 6/1/10
City of Lodi Revised RPS Procurement Plan and Enforcement Program Page 15
City of Lodi
Revised RPS Procurement Plan and Enforcement Program
November 20, 2013
• Lodi can claim credit for renewable energy procured prior to 2010 and use these credits
toward future year shortages
• To be reported by 12/31/2013
• Cost Limitation Revision
• Revised from 2 percent rate limiter to evaluation of local and regional economic conditions
and ability of customers to afford produced or procured energy products. The City may also
consider cost disparities between customer classes within the City and between the City,
customers and other POU and IOU customers within the region.
• Plan Modifications/Amendments
• Publicly noticed meetings of City Council with information to be provided to CEC.
City of Lodi Revised RPS Procurement Plan and Enforcement Program Page 16