HomeMy WebLinkAbout12 Renewable Portfolio . .. ........................... .....
Agenda Item #
Memo
To: Board of Directors
From: Stephen Hollabaugh
Date: January 30, 2004
Subject: Acceptance of TDPUD's Renewable Portfolio Standard
Why this matter is before the Board — The District had a workshop item to discuss this topic at the November
19, 2003 Board meeting. At this time, staff is asking the Board to accept the attached Renewable Portfolio
Standard as the District's policy. Only the Board can set policy.
History —At the November 19t" meeting, the Board had a workshop in which a proposed Truckee Donner Public
Utility District Renewable Portfolio Standard was discussed. At the meeting, the Board asked that this be brought
back for acceptance since it was just a workshop item November 19t".
Truckee Donner PUD Renewable Portfolio Standard
State Senate Bill 1078 (SB1078) was signed into law on September 12, 2002 and was effective January 1, 2003.
The legislation modifies the California Public Utilities Code to include a specific renewable resource requirement for
investor owned utilities (IOUs). The legislation also includes provisions that apply to publicly owned utilities. These
provisions would include:
• Requirement that the governing body implement and enforce a renewable portfolio standard to encourage
renewable resources
• Requirement that publicly owned utilities report annually to their customers the following:
o The amount of money spent on renewables from public benefit funds.
o The resource mix used to serve the customers (Truckee Donner Public Utility District already
publishes a quarterly notice).
• Each public utility governing board must define the terms of its RPS. The terms would include:
o What qualifies as a renewable resource (i.e. whether or not to count large hydroelectric projects in
excess of 30MW)
o The percentage of the total energy resources that are to be renewable
o The time frame in which to meet the"goal"of the defined standard
New Information—
I have put together the Truckee Donner Public Utility District Renewable Portfolio Standard which included any
comments or suggestions from the November 19t" Board meeting for the Board's review and possible acceptance,
(See attached)
Recommendation—
I recommend that the Board accept the Truckee Donner Public Utility District Renewable Portfolio Standard
as the District's policy.
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Renewable Portfolio Standard (RPS) Pate 1
Public Utility District
Truckee Donner PUD Renewable Portfolio Standard
PURPOSE:
TDPUD's policy regarding 2002 SB 1078—Renewable Portfolio Standard(RPS).
BACKGROUND:
State Senate Bill 1078 (SB1078) was signed into law on September 12, 2002 and was effective January 1,
2003. The legislation modifies the California Public Utilities Code to include a specific renewable
resource requirement for investor owned utilities (IOUs). The legislation also includes provisions that
apply to publicly owned utilities. These provisions would include:
• Requirement that the governing body implement and enforce a renewable portfolio standard to
encourage renewable resources
• Requirement that publicly owned utilities report annually to their customers the following
o The amount of money spent on renewables from public benefit funds
o The resource mix used to serve the customers (Truckee Donner Public Utility District
already publishes a quarterly notice)
• Each public utility governing board must define the terms of its RPS. The terms would include:
o What qualifies as a renewable resource (i.e. whether or not to count large hydroelectric
projects (in excess of 30MW)
o The percentage of the total energy resources that are to be renewable
o The time frame in which to meet the "goal'of the defined standard
Discussion points:
I. Although excluded for the purposes of the IOU's requirements under S131078, TDPUD's future
share in "large" hydroelectric projects is a valuable and critical component of the energy needs of
the community. TDPUD's allocation of the Western Area Power Administration (WAPA) starts
on January 1, 2005. This power is under a long term contract with the Department of Energy's
Western Area Power Administration (WAPA). Much of this power is generated at Shasta,
Folsom and New Melones Dams. None of these dams meet the CPUC's eligibility requirements
for IOU's. However, due to the nature of the management of these facilities by the Federal
Government for power, reclamation and environmental concerns, staff believes that a separation
of large and small hydroelectric projects at a 30 MW level is arbitrary and ignores the unique
nature of the resources provided by WAPA and the Department of Interior's Bureau of
Renewable Portfolio Standard (RPS) Page 2
Reclamation. Truckee Donner Public Utility District will include all hydroelectric regardless of
size and location as meeting the District's renewable portfolio standard.
2. The District's location in the Sierra Pacific Power transmission control area differs from all of
the other publically-owned utilities in California. TDPUD is a transmission dependent utility
(TDU) electrically internal to Sierra Pacific Power's control area. The interconnection points to
Sierra Pacific Power's control area are Summit Intertie (to CAISO), Alturas Line (to near COB),
Gonder Substation near Utah (this is the current location of our existing contract deliveries and
includes the Pacific Corp and LADWP control areas), and Midpoint Substation (to Idaho Power).
This transmission configuration must be taken into account when trying to identify future
renewable resources.
3. TDPUD is currently participating in a State grant-funded evaluation of the potential of CA's
public utilities using renewable energy resources in California. Our participation in this project is
to assist in evaluating the feasibility of using biomass electric generation in Truckee. There will
be a 15 KW biomass demonstration plant installed in Truckee in the Spring of 2004. There will
also be a feasibility study conducted to determine the potential value and economics of siting a 3-
4 MW biomass plant in Truckee.
POLICY:
The renewable portfolio standard of the Truckee Donner PUD will be as follows:
• Qualifying RPS resources are defined as non-fossil fueled electric generating
resources, including all hydroelectric resources:
o Geothermal including low-temperature(geothermal heat pumps)
o Hydroelectric
o Solar
o Wind
o Biomass and waste
o Fuel cells
• RPS Target:
o At such time that projected resources do not exceed projected demand, TDPUD will
strive to include qualifying resources to meet projected demand.
o Any purchase or construction of qualifying resources will be accomplished primarily
with accumulated public benefit funds. Due to the expected magnitude of incremental
resource requirements it is highly unlikely that TDPUD can secure qualifying resources
at reasonable rates (i.e. 100 kw of demand is a very small unit of delivery). There is a
potential within NCPA or DAMPS that TDPUD will be able to obtain a percentage
ownership in a qualifying facility but probably not at the time that the projected
resources are required.
Renewable Portfolio Standard (RPS) Policy Page 3
• Strategies for meeting RPS objectives:
o TDPUD has implemented solar PV and geothermal heat pump demonstration projects
utilizing public benefit funds. Housing stock is expected to increase 25% in the next 10
years. Demonstration and production solar and geothermal projects installed at a number
of new homes will provide RPS qualifying resources.
o TDPUD organizes an annual tour of energy-smart solar homes which results in the
installation in new small-scale renewable energy systems every year.
o Public benefit funds, when available, will be used to implement the demonstration
projects and may be used to supplement the production projects.
Reporting RPS performance
o TDPUD will continue to report to its customers the annual power content label.
o TDPUD will report the amount of public benefit funds expended for the development of
qualifying RPS resources in conjunction with the annual power content label reporting