11-28-2018 Spe Mtg Agn - Laserfiche WebLink

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ITEM NO. STAFF REPORT DATE: NOVEMBER 28, 2018 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: BILL SMITH, CITY MANAGER PREPARED BY: DAVID KOLK, PUBLIC WORKS & UTILITY SERVICES DIRECTOR SUBJECT: SCPPA PSA MAMMOTH CASA DIABLO IV ENERGY PROJECT RECOMMENDED ACTION Staff recommends that the City Council take the following action: Approve Resolution R-111-18, authorizing the participation in the Southern California Public Power Authority (SCPPA) Power Purchase Agreement (PPA), for up to 15 MW of renewable energy, with ORNI 50, LLC. Mammoth Casa Diablo IV Energy Project and authorizing the City Manager to execute the Power Sales Agreement (PSA) documents in substantially the form provided. BACKGROUND In April 2011, the State of California passed legislation (SB X1 2) amending the State’s Renewable Portfolio Standard (RPS), and setting specific renewable energy resource targets each electric utility, including publically owned utilities (POUs), must meet. SB X1 2 also set specific reporting periods and enforcement rules for meeting the RPS targets. With the adoption of SB X1 2, utilities are required to meet 20% of their retail load with renewable energy by the end of 2013; 25% of their retail load by the end of 2016; and 33% of their retail load by the end of 2020. In October 2015, the State Legislature passed SB 350, which, among other things, increased the RPS requirements from 33% in 2020 to 50% by 2030. In September 2018, the State again passed legislation, SB 100, which further increased the RPS mandate to 60% by 2030, and encourages the use of zero-emission resources to meet 100% of retail sales. Colton Electric Department (CED) is currently meeting the requirements of 29% of its retail load with renewable energy sources for calendar year 2018, and will meet the 33% goal for 2020. 1 411/28/2018 Council Agenda