HomeMy WebLinkAbout2013-16 Cap & Trade-Use of Revenue TRUCKEE
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Resolution No. 2013 - 16 Publ�c Utility District
Resolution of the Truckee Donner Public Utility District
Adopting the Cap-and-Trade Revenue Utilization Policy
For the Use of Revenues From the Sale of Allocated Allowances
In California's Greenhouse Gas Cap-and-Trade Auctions
RECITALS
A. The Global Warming Solutions Act, also known as Assembly Bill 32 (AB 32), requires that
California's Greenhouse Gas (GHG) emissions in 2020 are at the same levels as that of year
1990, and authorized the California Air Resources Board (CARB)to develop regulations to reach
this goal.
B. CARB's final regulations became effective January 1, 2012 and are contained in Title 17 of
California Code of Regulations, Sections 95800 — 96023.
C. The GHG emission Cap-and-Trade program is one of several tools designed by CARB to
achieve the state's GHG reduction goal and its implementation is due to start in November 2012.
D. As an electric distribution company, the Truckee Donner Public Utility District (District) has
been allocated GHG emission allowances (allowances) free of charge by CARB.
E. These allocated allowances are estimated to have a market value of$1.2 to $1.6 million in
calendar year 2013 and are expected to increase in value through 2020.
F. Under the terms of CARB's cap-and-trade regulation, the District is required to sell these
excess allocated allowances in the auctions conducted by CARB and utilize the auction sale
proceeds "exclusively for the benefit of retail electric ratepayers" and "consistent with the goals of
AB 32". (Title 17 CCR Section 95892(d)(3)).
G. The District supports the state's AB 32 goals, and intends to implement the District's
Cap-and-Trade Revenue Utilization Policy in furtherance of those goals.
The Truckee Donner Public Utility District ("District") does RESOLVE as follows:
The District's Cap-and-Trade Revenue Utilization Policy is as follows:
1. District shall abide by CARB's regulations by using the auction proceeds and allowance
value obtained from the District's allocated allowances for the exclusive benefit of the
District's retail ratepayers, consistent with the goals of the Assembly Bill 32 (AB32), and not
for the benefit of entities or persons other than such ratepayers.
1 Resolution 2013-16
2. District's auction proceeds will be set up in a separate account to track auction revenues
and the following uses are currently permitted:
a. Purchases or investments in renewable resources for the electric portfolio;
b. Investment in energy efficiency programs for the electric portfolio and retail
customers;
c. Rebates to retail electric ratepayers;
d. Investments or expenditures associated with carbon reducing measures at retail
customer facilities.
3. Allocated allowances may also be used to meet the District's electric utility's compliance
obligations.
4. District will receive annual reports on the allowance revenues and expenditures
associated with complying with CARB regulations.
5. Additional Board approval will be required for any rebates to electric ratepayers
proposed under this resolution.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District in
a meeting duly called and held within said District on the seventeenth day of July, 2013.
AYES: Directors Aguera, Bender, Ellis, Hemig and Laliotis
NOES: None
ABSTAIN: None
ABSENT: None
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Jeff Bender, President
ATTEST:
Michael D. Holley, P.E. Clerk of the Board
2 Resolution 2013-16