HomeMy WebLinkAbout15, Defining allocation of cap-n-trade fundsAction Item # 15
Defining Allocation of Funds
from AB 32, Cap -and -Trade
July 17, 2013
Background / History
• UnderAB32, the State of California has adopted a goal to
reduce state-wide emissions of greenhouse gas (GHG) to
estimated levels of the year 1990 by the year 2020
• The California Air Resource Board (GARB) has adopted a
market -based compliance mechanism commonly referred to
as the California Cap -and -Trade Program
• The District electric utility is identified as an "Electric
Distribution Utility" (EDU) under the Cap -and -Trade
regulations
• The District as an EDU is eligible to receive a direct
allocation of allowances at no cost from CARB
2
Background / History
• The table below lists the free allowances the District will
receive:
2013 2014 2015 2016 2017 2018 2019 2020
115,865 116,807 117,582 118,090 119,452 119,049 119,295 119,775
3
New Information
• Cap -and -Trade regulation restricts the manner in which EDU's
can use the revenues
• Separate account to track auction revenues
• Restrictions on the use of revenues
— Invest in renewable resources for electric portfolio
— Invest in energy efficiency programs for the electric portfolio
and retail customers
— Rebates to retail electric ratepayers
— Invest in carbon reducing measures at retail electric customer
facilities
• Recommend that revenues offset the cost premium of
renewable energy resources
0
Fiscal Impact
• The total financial impact to the District is unknown due to
auction price fluctuations
• Estimate $643,000 in revenues for FY13
5
Recommendation
a) Approve Resolution 2013-16 for the District Cap -and -Trade
Utilization Policy of the use of revenues from the sale of
allocated allowances in California's GHG Cap -and -Trade
auctions
b) Approve for FY14 and FY15 the revenue from the sale of
Cap -and -Trade allowances be used for purchase in
renewable resources for the electric portfolio namely the
Horse Butte Wind project
a