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HomeMy WebLinkAbout9 Green Renewable Energy Credits Agenda Item # KEE DONNER PUbhc Utility District Workshop To: Board of Directors From: Kathleen Neus, Technical Program Administrator Date: January 3, 2008 Subject: Voluntary Green Renewable Energy Credits Program 1. WHY THIS MATTER IS BEFORE THE BOARD This is an informational discussion of voluntary Green Renewable Energy Credits Programs. Objectives: 5. Manage the District in an environmentally sound manner. Goals: 5.2 District will strengthen its programs of water and electric power conservation. 5.4 District will conduct its business in an environmentally lawful manner. 5.6 District will seek to minimize any negative impact of its operations on the environment. 2. HISTORY In an effort to help District customers, residential and commercial to reduce their individual environmental impact, I have been looking into voluntary Green Renewable Energy Credits Programs. Green power or "renewable energy" is considered energy that is generated from resources that have relatively low impact on the health of humans, animals and the ecosystem; these resources contribute minimal carbon dioxide emissions if any. Renewable energy sources are wind, PV, landfill gas, biomass, geothermal and hydro. Green Renewable Energy Credits Programs are voluntary in nature; the generated green power is not necessarily fed back into the purchaser's power grid. One Renewable Energy Credits (RECs), "Green Tag" is equal to 1000 kWh of clean renewable energy. 1000 kWh of renewable energy is the equivalent of offsetting 1500 miles of emissions from a standard car. 3. NEW INFORMATION Renewable Energy Credits (RECs) also called "Green Tags"; represent the environmental benefits that occur when clean, new renewable energy is substituted for power that is produced by burning fossil fuel. Revenues that are generated through Green Tag purchases are reinvested in new forms of renewable energy. In order for RECs to remain unique and individual, RECs should be Green-e Certified. The nonprofit Center for Resources (CRS) has developed and implemented consumer-protection standards for the voluntary renewable energy market through the Green-e program. Green-e Energy is the nation's leading independent certification and verification program for renewable energy. Voluntary Green Renewable Energy Credits Program is a relatively simple program in concept. It is necessary to have a REC Marketer to purchase the RECs from; the marketer will need to give the District of an accounting of the number of Green Tags purchased and the certification proving that the purchased Green Tags are new. Additionally there are other pieces of the program that need final input; how do individuals and businesses sign-up, how to keep track of participants, how to bill the same and a marketing program. I have been looking closely at Bonneville Environmental Foundation (BEF). BEF began as a support to the Bonneville Power Administration for watershed restoration programs and to develop new sources of renewable energy. BEF is a 501(c) (3) non-profit environmental organization. In 2000 BEF developed its Green Tags product due to the demand for renewable energy in places where utilities did not have the option. All revenues generated from the sale of Green Tags are reinvested in new forms of renewable energy. The Conservation Committee was correct in the statement that there is no cost to the budget to implement a voluntary Green Renewable Energy Credits Program but in reality in order to have a successful program money needs to be spent on marketing the program. So at some point if a Green Renewable Energy Credits Program is approved there will be a need to find the money to fund a marketing program. At the end of the staff report is a table depicting what some of the local NCPA members are offering their residential and commercial customers. 4. RECOMMENDATION I have spent a lot of time researching different Green Tag Retailers; I am requesting Board direction to continue to pursue a voluntary Green Renewable Energy Credits Program with Bonneville Environmental Foundation. The estimated cost to the consumer is $0.015 per kWh per month. neral Services oh Ulrich, Interim GM Some local NCPA members and what they offer their customers: Utility Program Name Type of Cost Inception Date Generation City of Palo Alto Palo Alto Green Wind, PV $0.015/ kWh / Month- Res 2000/2003 $0.015/ kWh / Month or$15.00 per 1000kWh blocks Roseville Electric Green Roseville Wind, PV $0.015/ kWh / Month- Res & Small 2005 Com SMUD Greenergy Wind, landfill gas, 100% - $6.00/ Month 1997 hydro, PV 50% - $3.00/month SolarShares PV 2007 Silicone Valley Santa Clara Green Wind, PV 100% - $15.00/ Month 2004 Power Power Silicone Valley Power—Large Commercial and Industrial customers can purchase Green Tags in 1000 kWh blocks for$15.00 per block. City of Palo Alto—Business Operators depending on usage can choose$0.015 per kWh per month or pay$15.00 per 1000 kWh blocks. Roseville Electric—Residential and Small commercial $0.015 per kWh or$15.00 per month for 100%energy usage. Large Businesses pay$15.00 per 1000 kWh blocks. SKIGreen (Bonneville Environmental Foundation) ski resorts participating in clean energy initiatives. When purchasing a lift ticket, the individual can request a two dollar contribution towards wind energy which is added to the cost of the lift ticket. Local participating Ski Resorts include Alpine Meadows, Kirkwood, Mt. Rose and Northstar-at-Tahoe. i