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1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />RESOLUTION NO. R-58-18 <br />RESOLUTION OF THE CITY COUNCIL OF THE CITY <br />OF COLTON APPROVING WAIVING THE FORMAL <br />BIDDING PROCESS AND AUTHORIZING THE CITY OF <br />COLTON TO PIGGYBACK ON THE CITY OF <br />ANAHEIMS AWARD CONTRACT TO EVOLUTION <br />MARKETS INC., AS A BROKER FOR TRANSACTING <br />LOW CARBON STANDARD CREDITS AND AMENDING <br />FY 2017-2018 BUDGET INCREASING REVENUES <br />WHEREAS, It is recommended that the Colton City Council waive the formal bidding <br />process and authorize the City of Colton to piggyback on the City of Anaheim's award contract to <br />Evolution Markets Inc., as a broker for transacting Low Carbon Fuel Standard (LCFS) credits, <br />waiving the formal bidding process in accordance with Colton Municipal Code 3.08.140(c), <br />amending FY budget 17-18 increasing revenues, and authorizing the City Manager to execute the <br />contract. <br />WHEREAS, The California Air Resources Board (CARB) developed the Low Carbon Fuel <br />Standard (LCFS) program in compliance with AB 32 (the Global Warming Solutions Act of 2006) <br />to reduce the carbon intensity of transportation fuels used in California by 10% by 2020. Under <br />the LCFS, providers of alternate fuels generate credits that can be sold to producers of traditional <br />fossil fuels, helping those entities meet AB 32 emission reduction requirements. Electric utilities <br />that provide electricity to charge Electric Vehicles (EVs) and electric forklifts are eligible to receive <br />LCFS credits based on the number of EVs in their service territory. CARB' approved the City of <br />Colton Electric Departments (CED) application to participate in the LCFS program in 2014, and <br />has been allocating LCFS credits to CED since then. The accumulation of credits from 2014 to <br />2017 are currently valued at over $100,000. More credits are expected to be allocated to CED in <br />2018 as the number of EVs and forklifts increase. The value of these credits fluctuate based on <br />market pricing; and <br />WHEREAS, In order to be eligible to receive LCFS credits for transportation fuel <br />supplied, the City must use all credit proceeds to benefit current or future EV customers, educate <br />the public on the benefits of EV transportation, provide rates that encourage off-peak charging <br />and minimize grid impacts, and provide CARB with an annual compliance report. Options <br />include providing rebates to EV owners with registered vehicles in Colton, funding the <br />-1- <br />