HomeMy WebLinkAbout13 Senate Bill 1x2 Agenda Item ## 13
TRUCKEE DONNER
CTION
To: Board of Directors
From: Stephen Hollabaugh
Date: December 07, 2011
Subject: Consideration of Adopting a Resolution EstablishingProgram
a gam for
Enforcement of the Renewable Portfolio Standards Program and
Approving the Renewable Energy Resources Procurement Plan per
Senate Bill 1X2
1. WHY THIS MATTER IS BEFORE THE BOARD
This item involves approving a resolution for approval of a program for enforcement
the renewable portfolio standards program g ent of
p g m and approving a Renewable Energy
Resources Procurement Plan. Only the Board can approve a resolution.
2. HISTORY
On April 12, 2011 Governor Brown signed into law SB 1 X2 establishing
RPS � a new
Renewable Portfolio Standard
(RPS) of 33% by 2020 for all load serving entities in
California. Truckee Donner Public Utility District publicly a as(TDPUD ,) p y owned utility,
is covered under the new law. SB 1 X2 establishes minimum quantities of renewables
that load serving entities must procure through 2020 ranging from 20°/
by 2013 to 33% by 2020. In addition the new law specifies the types of electric
generator resources that qualify as renewable resources and sets forth limits on the
types of resources and power transactions that a load servingentity
purposes of demonstrating compliance with the Y can claim for
p e new RPS policy. Each load serving
entity covered under the new law, including TDPUD, is required to
implement a Renewable EnergyProcurement q adopt and
ent Plan (RPS Procurement Plan").
Additionally, the law requires each local governing board of a publicly
adopt a program for the enforcement Enforce p y owned utility to
Plan (Enforcement Program) of the RPS Procurement
by January 1, 2012.
3. NEW INFORMATION
TDPUD's RPS Procurement Plan (Attachment 1) is based on a model
by the Northern California Power Agency plan developed
g y (NCPA) for use by its members. The RPS
Procurement Plan, which is comprised of 13 sections, requires TDPUD
q to procure
minimum quantities of electricity products sourced from eligible renewable resources,
expressed as a percentage of TDPUD's total kilowatt hours sold to retail end-use
customers during each of three compliance periods. In addition to establishing
minimum procurement targets for each compliance period, the plan includes the
following key components:
1) Defines the procurement content categories for resources used to demonstrate
compliance with the targets;
2) Defines eligible resources that apply to TDPUD;
3) Outlines procedures for applying excess renewables from one compliance
period to a subsequent compliance period;
4) Describes procedures allowing for a waiver of timely compliance due to
mitigating circumstances;
5) Allows for the adoption of cost limitations for procurement expenditures b the
Board, y
6) Summarizes external reporting requirements; and
7) Provides for annual review of the plan.
TDPUD's Enforcement Program commits the General Manager to cause the RPS
Procurement Plan to be reviewed annually. The Enforcement Resolution is included
as Attachment 2. For each review, conducted at the end of a compliance period,
procurement TDPUD shall verify that is has met the minimum
p t target applicable to the
compliance period. For each review, conducted at the end of an interveningyear
is making reasonable
within a compliance period, TDPUD shall ensure that the utility y
progress toward meeting the end of compliance period target. The Enforcement Plan
further provides that in the event that a target is not/will not be met, TDPUD will
assess the applicability of: (1) applying excess procurement, if any, from a prior
compliance period to a subsequent compliance period; 2
p , ( ) securing a waiver of timely
compliance due to the existence of a qualifying mitigating circumstance; and 3
excusing ( )
performance based on cost limitations on procurement expenditures. In the
event that it is determined that TDPUD has failed to comply with the provisions of the
RPS Procurement Plan, the Enforcement Plan commits the Board to take steps
correct any untimely compliance, including:
p to
a) Reviewing the RPS Procurement Plan to determine what changes if an are
compliance P period,
necessary to ensure compliance in the next c g ' y'
b) Requiring quarterly reports from TDPUD staff regarding the progress being
made toward meeting the compliance obligation p g g
and
p g for the next compliance period;
c) Requiring TDPUD staff to report on the status of meetingsubsequent
compliance targets and all steps being taken i nt
p g to ensure that the obligation is
timely met.
Both the RPS Procurement Plan and Enforcement Program shall have an effective
date of January 1, 2012.
SB 1 X2 requires a minimum of 30 day advance notice to the public and the California
Energy Commission of any meeting held for purposes of adopting the Enforcement
Program. This noticing requirement was satisfied by publishing a notice in the
November 2, 2011 edition of the Sierra Sun (Attachment 3). SB 1 X2 also requires that
Plan be shared with the
meeting materials related to the RPS Procurement PI q
public and
the California Energy Commission contemporaneous with the distribution of such
material to the Board. This requirement was satisfied by posting all meetings on the
TDPUD website and proving a link to the California Energy Commission.
4. FISCAL IMPACT
There is no direct financial impact associated with the development and approval of
the RPS Procurement Plan and Enforcement Program, pp
1� g as required by Senate Bill
5. RECOMMENDATION
a) Adopt the Renewable Energy Resources Procurement Plan Per Senate Bill 1 X2
(RPS Procurement Plan)
b) Adopt the resolution to establish a program for Enforcement of the Renewable
Portfolio Standards Program.
Stephen Hollabaugh
Michael D. Holley
Assistant General Manager General Man
ager
Attachment 1
Truckee Donner Public Utility District
Renewable Energy Resources Procurement Plan
Per Senate Bill 1x 2
Approved by the Truckee Donner Public Utility District Board of Directors: December 7,2011
INTRODUCTION
This document presents the Renewable Energy Resources Procurement Plan of the Truckee
Donner Public Utility District(Truckee Donner) as required for compliance with Senate Bill
(SB) IX 2. This legislation, which was enacted in the 2011-2012 First ExtraordinarySession of
the Legislature, modifies the state's renewable portfolio standard(RPS) and sets forth
program rth
new RPS requirements applicable to publicly owned utilities(POUs). Truckee Donner, as a
U, is covered under the new legislation. Pursuant to Public Utilities Code § 399.30 a each
POU must adopt and implement a renewable energy resources procurement plan referred
P ( to
herein as the"RPS Procurement Plan"). In addition to the development of an RPS Procu
rement
Plan, SB 1 X 2 requires POUs to adopt and implement a separate for the enforcement
program cement of
the RPS Procurement Plan by January 1, 2012.1 Truckee Donner's enforcement ro p gram is not
addressed in this document,but rather, in a separate report.
Truckee Donner's RPS Procurement Plan, as reflected in Sections 1-13 below consists of. (1)
plan elements that are directly mandated by the legislation; (2)measures that address
each of the
optional provisions set forth in§399.30(d); and (3)RPS reportingprovisions. Where p appropriate,
this RPS Procurement Plan includes section citations to the legislation.
1. Purpose (§ 399.30(a))
In order to fulfill unmet long-term generation resource needs, Truckee Donner ad
opts and
implements this RPS Procurement Plan that requires the utilityto min'procure a minimum
quantity of electricity products from eligible renewable energy resources including
renewable energy credits, as a specified percentage of Truckee Donner's total kilow
att
hours sold to its retail end-use customers, each compliance period, to achieve ve the targets
specified in SB 1 X 2.
2. Compliance Periods (§ 399.30(b))
A. Compliance Period 1: January 1, 2011, to December 313,2013 inclusiv
e.
B. Compliance Period 2: January 1, 2014, to December 31 2016 inclu
sive.
1 Pursuant to §399.30(e),POUs must adopt a"program for enforcement"of the
January 1,2012,at a publicly noticed meeting with not less than 30 days prior RPS Procurement Plan on or before
y p r notice given to the public.
Effective:January 1,2012 _ 1 _
C. Compliance Period 3: January 1, 2017, to December 31, 2020, inclusive.
D. Annual Compliance Periods: Annually after 2020.
3. Procurement Tar ets of Renewable Ener2v Resources for Each Compliance Period
(§§399.30(c)(1) and (2))
A. During Compliance Period 1, January 1, 2011 to December 31, 2013, Truckee
Donner shall procure renewable energy resources equivalent to an average of at
least twenty percent (20%) of retail sales.
B. By the end of Compliance Period 2, December 31, 2016, Truckee Donner shall
procure renewable energy resources equivalent to at least twenty-five percent
(25%) of retail sales.
C. By the end of Compliance Period 3, December 31, 2020, Truckee Donner shall
procure renewable energy resources equivalent to at least thirty-three percent
(33%) of retail sales.
D. Commencing on December 31, 2021, and annually thereafter, Truckee Donner
shall procure renewable energy resources equivalent to at least thirty-three percent
(33%) of retail sales.
The procurement targets listed above are minimum requirements. The Board of Directors
may determine that a higher percentage of renewable energy resources is appropriate in
any given compliance period.
The method used to determine the actual renewable energy resource percentage achieve
for a given calendar year shall be to: i sum the tot p g d
( ) al metered generation from each of
Truckee Donner's eligible renewable resources and qualifying purchases in Megawatt
hours (MWh) during the preceding calendar year, ii sub g
renewable resources � ) tract sales, if any, of eligible
during the same time period, and(iii) divide the result by the total
energy sold to Truckee Donner's retail end-use customers (in MWh) in the same time
period.
4. Reasonable Pro ress Towards Meetin Com fiance Period Tarizets Durin
Intervening Years g
(§§ 399.30(c)(1) and (2))
A. By December 31, 2014, Truckee Donner shall demonstrate that it is making
reasonable progress towards ensuring that it shall meet the twenty-five
(25%)RPS target Y et b 2016. percent
B. By December 31, 2015, Truckee Donner shall demonstrate that it is making
reasonable progress towards ensuring that it shall meet the twenty-five
(25%)RPS target by 2016. percent
Effective:January 1, 2012 -2-
C. By December 31, 2017, Truckee Donner shall demonstrate that it is making
reasonable progress towards ensuringthat it shall meet the
e thirty-three percent
(33%)RPS target by 2020.
D. By December 31, 2018, Truckee Donner shall demonstrate that it is making
reasonable progress towards ensuringthat it shall meet the thirty-three
arty-three percent
(3 3%)RPS target by 2 02 0.
E. By December 31, 2019, Truckee Donner shall demonstrate that it is making
reasonable progress towards ensuringthat it shall meet the
thirty-three percent
(33%)RPS target by 2020.
5. Procurement Re uirements—Definitions for Eligible Resources 399.30 i
Truckee Donner's RPS Procurement Plan that will include eligible renewable energy
resources, defined pursuant to Public Utilities Code section 399.30 i '
The provisions of Public Utilities Code section 399.30(i) apply to the TRUCKEE
DONNER PUBLIC UTILITY DISTRICT since the DISTRICT was in existence before
January 1, 2009,provides retail electric service to 139167 customer accounts as of
December 2011, and is interconnected to a balancing authority that is located outside the
state of California(NV Energy)but within the Western Electric Coordinating Council.
A. Eli 'ble renewable ener2v resources consistent with 399.30 i : includes a
facility that is located outside California that is connected to the WECC
transmission system.
B. Grandfathered Resources C 399 16(d)): Any contract or ownershipa
originally executed prior to June 1, 2010 shall count 'n full towards
the
procurement requirements, if all of the following conditions are met:
(1) The renewable energy resource was eligible under the rules in lace as
of the date when the contract was executed. p
(2)Any contract amendments or modifications occurring after June 1
2010, do not increase the nameplate capacity or expected quantities of
annual generation, or substitute a different renewable energy resource.
(3) The duration of the contract may be extended if the original contract
specified a procurement commitment of fifteen(15) or more years.
(4) "Eligible renewable energy resource"means an electrical generating
facility that meets the definition of a" electrical generation
renewable eleg g
facility"in Section 25741 of the Public Resources Code, subject to the
following: �
. . . (C)A facility approved by the governing board of a local
publicly owned electric utility prior to June 1, 2010, for procurement to
Effective:January 1, 2012 -3-
satisfy renewable energy procurement obligations adopted pursuant to
former Section 387, shall be certified as an eligible renewable energy
resource by the Energy Commission pursuant to this article, if the facility
is a"renewable electrical generation facility" as defined in Section 25741
of the Public Resources Code. (§ 399.12(e)(1)(C).
6. Procurement Requirements—Quantity of Content Categories (§399.30 d 1
§399.13(a)(4)(B ( )( )'
Not applicable to Truckee Donner due to (§399.30 (i)) above at 5.
7. Excess Procurement(§399.30(d)(1), §399.13(a)(4)(B))
Truckee Donner shall be allowed to apply excess procurement(Excess Procurement
subsequent co )
from one compliance period to subse
q compliance periods as long as the following
conditions are met:
A. Truckee Donner may accumulate,beginning on January 1, 2011, Excess
Procurement from one Compliance Period to be applied in any subsequent
Compliance Period. q
B. In calculating the quantity of Excess Procurement, Truckee Donner shall
deduct from actual procurement quantities, the total amount of
procurement associated with contracts of less than ten(10) years in
duration.
8. Waiver of Timely Compliance(§399.30(d)(2), §399.15(b)(5
A. Waiver of Timely Compliance: Enforcement of timely compliance shall be
y of the following waived if Truckee Donner demonstrates that an p
wing conditions are
beyond Truckee Donner's control, and will prevent timely compliance:
1. Inadequate Transmission (§ 399.15(b)(5)(A)): There is inadequate
transmission capacity to allow for sufficient electricity' to be delivered
from Truckee Donner's proposed eligible renewable energyresource
projects using the current operational protocols
p p s of Truckee Dormer's
Balancing Authority(NV Energy). In making its findings relative to the
existence of this condition, Truckee Donner's deliberations shall include
but not be limited to the following: '
(i)Whether Truckee Donner has undertaken, in a timely fashion
reasonable measures under its control and consistent with its obligations
under local, state, and federal laws and regulations, to g
Su develop and
construct new transmission lines or upgrades to existing lines intended to
Effective:January 1, 2012 -4-
transmit electricity generated by eligible renewable energy resources. In
determining the reasonableness of Truckee Donner's actions, Truckee
Donner shall consider its expectations for full-cost recovery for these
transmission lines and upgrades, and
(ii)Whether Truckee Donner has taken all reasonable operational
measures to maximize cost-effective deliveries of electricity from eligible
renewable energy resources in advance of transmission availability.
2. Permitting, interconnection, or other factors that delayed procurement or
insufficient supply(399.15(b)(5)(B)). In making its findings relative to the
existence of this condition, Truckee Donner's deliberations shall include,
but not be limited to the following:
(i)Whether Truckee Donner prudently managed portfolio risks,
including relying on a sufficient number of viable projects;
(ii)Whether Truckee Donner sought to develop one of the
following: its own eligible renewable energy resources, transmission to
interconnect to eligible renewable energy resources, or energy storage
used to integrate eligible renewable energy resources.
(iii) Whether Truckee Donner procured an appropriate minimum
margin of procurement above the minimum procurement level necessary
to comply with the renewables portfolio standard to compensate for
foreseeable delays or insufficient supply;
(iv)Whether Truckee Donner has taken reasonable measures,
under its control to procure cost-effective distributed generation and
allowable unbundled renewable energy credits;
(v) Whether actions or events beyond the control of Truckee
Donner have adversely impacted timely deliveries of renewable energy
resources including,but not limited to, acts of nature, terrorism, war, labor
difficulty, civil disturbance, or market manipulation.
3. Unanticipated curtailment to address needs of the balancing authority
(§ 399.15(b)(5)(C)).
B. Procedures Upon ADDroving Waiver: In the event of a Waiver of Timely
Compliance due to any of the factors set forth above Truckee
Donner shall
implement the following procedures:
Effective:January 1, 2012 _S_
1. Establish additional reporting for intervening years to demonstrate that
reasonable actions under the Truckee Donner's control are being taken
(§399.15(b)(6)).
2. Require a demonstration that all reasonable actions within Truckee
Donner's control have been taken to ensure compliance in order to grant
the waiver(§ 399.15(b)(7)).
C. Prior Deficits: In no event shall deficits from prior compliance periods be added
to future compliance periods (§ 399.15(b)(9)).
9. Cost Limitations for Expenditures (§399.30(d)(3), §399.15(c))
A. Cost Limitations for Expenditures: Truckee Donner, at its sole discretion, may
elect to establish cost limitations for all eligible renewable energy resources used
to comply with the renewables portfolio standard. Any such cost limitations will
be developed consistent with§399.15(c). Truckee Donner shall review the need
for cost limitations as part of the annual review process described in Section 12.
10. Exclusive Control(§399.30(m)); In all matters regarding compliance with the RPS
Procurement Plan, Truckee Donner shall retain exclusive control and discretion over the
following:
A. The mix of eligible renewable energy resources procured by Truckee Donner and
those additional generation resources procured by Truckee Donner for purposes of
ensuring resource adequacy and reliability.
B. The reasonable costs incurred by Truckee Donner for eligible renewable energy
resources owned by it.
11. Reporting(§399.30(f), §399.30(g), §399.30(1))
A. Deliberations on Procurement Plan(§399.30(f)):
1. Public Notice: Annually, Truckee Donner shall post notice of meetings if
the Council will deliberate in public regarding this RPS P g
g g Procurement Plan.
2. Notice to the California Energy Commission (CEC): Contemporaneous
with the posting of a notice for such a meeting, Truckee Donner shall
notify the CEC of the date, time and location of the meeting in order to
enable the CEC to post the information on its Internet website.
3. Documents and Materials Related to Procurement Status and Plans:
When Truckee Donner provides information to the Council related to its
renewable energy resources procurement status and future plans, for the
Board's consideration at a noticed public meeting, Truckee Donner shall
Effective:January 1, 2012 -6-
make that information available to the public and shall provide the CEC
with an electronic copy of the documents for posting on the CEC's
Internet website.
B. Annual Report to CEC regarding Contract Execution(§399.30(g))
l. Annually, Truckee Donner shall submit a report to the CEC regarding
procurement contracts executed during the prior year.
2. Truckee Donner's annual report to the CEC regarding contract execution
shall include all of the following:
a. A description of the eligible renewable energy resource, including
the duration of the contract or electricity purchase agreement.
b. A description and identification of the electrical generating facility
providing the eligible renewable energy resource under the
contract.
C. An estimate of the percentage increase in Truckee Donner's total
retail sales of electricity from eligible renewable energy resources
that will result from the contract.
C. Report to CEC and Customers (§399.30(1))
1• Annually, Truckee Donner shall provide a report to the CEC and
customers regarding renewable resources.
2. Truckee Donner's annual report to the CEC regarding renewable resources
shall include all of the following:
a. Expenditures of public goods funds collected pursuant to Section
385 for eligible renewable energy resource development, including
programs descriptions, expenditures, and expected/actual results.
b. The resource mix used to serve its customers by energy source.
C. Truckee Donner's status in implementing the renewables portfolio
standard pursuant to § 399.30(a) and Truckee Donner's progress
toward attaining the standard following implementation of the RPS
Procurement Plan.
12. Program Review
Truckee Donner's RPS Procurement Plan shall be reviewed by the Board of Directors in
accordance with Truckee Donner's "Renewable Portfolio Standard Enforcement Program."
Effective:January 1, 2012 _ _
v
13. Plan Modifications/Amendments
This RPS Procurement Plan may be modified or amended by an affirmative vote of the Board of
Directors during a public meeting. Any Board action to modify or amend the plan must be
publicly noticed in accordance with Section 11.
Effective:January 1, 2012 -8-
Attachment 2
TRUCKEE DONNER
r:
i4
Resolution No. 2011 - XX
RESOLUTION OF THE BOARD OF DIRECTORS OF
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
APPROVAL OF A PROGRAM FOR ENFORCEMENT OF THE RENEWABLE
PORTFOLIO STANDARDS PROGRAM
BE IT RESOLVED BY THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT AS
FOLLOWS:
WHEREAS, the State of California has an existing California Renewables Portfolio
Standard Program (RPS program) that is intended to increase the amount of electricity
generated each year from eligible renewable energyresources;
,
WHEREAS, on April 12, 2011, the Governor of the State of California signed California
Senate Bill 2 of the First Extraordinary Session (SBX1-2, Chapter 1, Statutes of 2011, First
Extraordinary Session), known as the California Renewable Energy Resources Act;
WHEREAS, on September 9, 2011, the California Legislature ended the First
Extraordinary Session;
WHEREAS, SBX1-2 becomes effective on December 10, 2011, ninety-one days after
the end of the First Extraordinary Session; Y
WHEREAS, SBX1-2 states the intent of the Legislature that the amount of electricity
generated per year from eligible renewable energyresources be increased ased to an amount that
equals at least 20% of the total electricity sold to retail customers in California per year b
December 31, 2013, and 33% by December 31 2020; Y Y
WHEREAS, pursuant to the provisions of Public Utilities Code section a 399.30( )' the
TRUCKEE DONNER PUBLIC UTILITY DI
STRICT must adopt and implement a renewable
energy resources procurement plan (hereinafter referred to as the "RPS Procurement Plan"
generation resource n }
to fulfill unmet long-term
9 needs, that requires the TRUCKEE DONNER
PUBLIC UTILITY DISTRICT to procure a minimum quantity of electricityproducts from
eligible renewable energy resources, including p om
renewable energy credits, as a specified
percentage of the total kilowatt-hours sold to the TRUCKEE DONNER PUBLIC UTILITY
DISTRICT's retail end-use customers each compliance e period, to achieve s
procurement targets; specified
WHEREAS, the District has adopted and implemented, or will adopt and implement,
an RPS Procurement Plan that includes compliance periods p p t'p p ods (Compliance Periods) pursuant
to Public Utilities Code section 399.30(b). Such Compliance Periods shall be January
2011 to December 31, 2013, inclusive (Compliance Per' 1,
( p Period 1), January 1, 2014 to December
Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program
Page 1 of 6
31, 2016, inclusive (Compliance Period 2), January 1, 2017 to December 31, 2020, inclusive
(Compliance Period 3), and each calendar year after 2020;
WHEREAS, the TRUCKEE DONNER PUBLIC UTILITY DISTRICT has adopted and
implemented, or will adopt and implement, an RPS Procurement Plan that includes specified
procurement targets (Procurement Targets) of renewable energy resources for each
Compliance Period pursuant to Public Utilities Code section 399.30(c)(1) and (2).
Procurement Targets must average twenty percent (20%) of retail sales for the period
January 1, 2011 to December 31, 2013, must meet twenty-five percent (25%) of retail sales
by December 31, 2016, must meet thirty-three percent (33%) of retail sales by December 31,
2020, and must meet thirty-three percent (33%) of retail sales for all years thereafter;
WHEREAS, the TRUCKEE DONNER PUBLIC UTILITY DISTRICT has adopted and
implemented, or will adopt and implement, an RPS Procurement Plan that includes
provisions that address a demonstration of reasonable progress in 2014 and 2015 to ensure
the twenty five percent (25%) RPS procurement requirement by 2016, and reasonable
progress in each of 2017, 2018, and 2019 to ensure the thirty three percent (33%) RPS
procurement requirement by 2020, pursuant to Public Utilities Code section 399.30(c)(2);
WHEREAS, the TRUCKEE DONNER PUBLIC UTILITY DISTRICT has adopted and
implemented, or will adopt and implement an RPS Procurement Plan that will include eligible
renewable energy resources, defined pursuant to Public Utilities Code section 399.30 (i);
WHEREAS, the provisions of Public Utilities Code section 399.30(i) apply to the
TRUCKEE DONNER PUBLIC UTILITY DISTRICT since the DISTRICT was in existence
before January 1, 2009, provides retail electric service to 13,167 customer accounts as of
December 2011, and is interconnected to a balancing authority that is located outside the
state of California (NV Energy) but within the Western Electric Coordinating Council.
WHEREAS, the TRUCKEE DONNER PUBLIC UTILITY DISTRICT has adopted and
implemented, or will adopt and implement, an RPS Procurement Plan that includes the
minimum procurement requirements (Procurement Requirements) of eligible renewable
energy resource electricity products associated with contracts executed after June 1, 2010 for
each Compliance Period, consistent with Public Utilities Code section 399.30(c) 3 and
section 399.16; ( )
WHEREAS, the TRUCKEE DONNER PUBLIC UTILITY DISTRICT has adopted and
implemented, or will adopt and implement, an RPS Procurement Plan that provides a
definition for contract or ownershipagreements originally a g executed prior to June 1, 2010
(Grandfathered Resources) consistent with Public Utilities Code section 399.16(d).
Grandfathered Resources shall include any contract or ownership agreement originally
executed prior to June 1, 2010 for resources that were RPS eligible under the rules in lace
when the contract was executed, and for which an subsequent c p
Y q contract amendments or
modifications occurring after June 1, 2010 do not increase the nameplate capacityfor the
facility or expected quantities of annual generation, or substitute
g a different renewable energy
resource; the duration of the contract may be extended if the original contract specified a
procurement commitment of fifteen (15) or more years;
Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program
Page 2 of 6
WHEREAS, the TRUCKEE DONNER PUBLIC UTILITY DISTRICT has adopted and
implemented, or will adopt and implement, an RPS Procurement Plan that includes rules for
application of excess procurement (Excess Procurement) of eligible renewable energy
resource electricity from one Compliance Period to a subsequent Compliance Period
consistent with Public Utilities Code section 399.30(d)(1) and in the same manner as section
399.13(a)(4)(B). Beginning January 1, 2011, Excess Procurement from one Compliance
Period may be applied to a subsequent Compliance Period; to determine the quantity of
Excess Procurement for the applicable Compliance Period, the Truckee Donner Public Utility
District shall deduct from actual procurement quantities, the total amount of procurement
associated with contracts of less than ten (10) years in duration, and shall not include any
resources designated as Content Category 3;
WHEREAS, the Truckee Donner Public Utility District has adopted and implemented,
or will adopt and implement, an RPS Procurement Plan that includes conditions for delaying
timely compliance consistent with Public Utilities Code section 399.30(d)(2) and section
399.15(b). The Truckee Donner Public Utility District may approve a waiver of timely
compliance (Waiver of Timely Compliance) in the event that there is inadequate transmission
capacity (§ 399.15(b)(5)(A)), permitting, interconnection, or other factors that delay
procurement, or insufficient supply (§ 399.15(b)(5)(13)), unanticipated curtailment are
mandated to address needs of the balancing authority (§ 399.15(b)(5)(C)), or related factors
existed;
WHEREAS, the Truckee Donner Public Utility District has adopted and implemented,
or will adopt and implement, an RPS Procurement Plan that establishes procedures to
employ in the event of an approval of a Waiver of Timely Compliance, which provisions
require the Truckee Donner Public Utility District to establish additional reporting for
intervening years to demonstrate that reasonable actions under the Truckee Donner Public
Utility District's control are being taken (§ 399.15(b)(6)) and to demonstrate that all
reasonable actions within the Truckee Donner Public Utility District's control have been taken
to ensure compliance in the future (§ 399.15(b)(7)); in no event shall the deficit from prior
compliance periods be added to subsequent compliance periods in the event of a Waiver of
Timely Compliance (§ 399.15(b)(9));
WHEREAS, the Truckee Donner Public Utility District has adopted and implemented,
or will adopt and implement, an RPS Procurement Plan that establishes procedures that
address cost limitations for expenditures on renewable resources (Cost Limitations for
Expenditures) consistent with Public Utilities Code section 399.30(d)(3) and section
399.15(c). Cost Limitations for Expenditures shall be applicable to procurement expenditures
for all eligible renewable energyresources used to c p comply with the renewables portfolio
standard, and shall be based on factors that include, but are not limited to, the most recent
renewable energy procurement plan, procurement expenditures that approximate the
expected cost of building, owning, and operating eligible renewable energy resources, and
the potential that some planned resource additions may be delayed or canceled;
WHEREAS, pursuant to the provisions of Public Utilities Code section 399.30 m , the
Truckee Donner Public UtilityDistrict shall ( )
all retain discretion over the mix of eligible renewable
energy resources procured by the Truckee Donner Public Utility District and those additional
generation resources procured by the Truckee Donner Public Utility District for purposes of
Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program
Page 3 of 6
ensuring resource adequacy and reliability, and the reasonable costs incurred by the Truckee
Donner Public Utility District for eligible renewable energy resources owned by it;
WHEREAS, pursuant to the provisions of Public Utilities Code section 399.30(e), the
District is required to adopt a program for the enforcement of the RPS program;
WHEREAS, pursuant to the provisions of Public Utilities Code section 399.30(e), the
District must adopt a program for enforcement of the RPS program on or before January 1,
2012;
WHEREAS, the Board of Directors, in compliance with Public Utilities Code section
399.30(e), desires to adopt a program for the enforcement of RPS program (RPS
Enforcement Program); and,
WHEREAS, the Board of Directors, in compliance with Public Utilities Code section
399.30(e), has provided not less than thirty days' notice of the proposed adoption of the RPS
Enforcement Program.
NOW THEREFORE, THE BOARD OF DIRECTORS OF THE TRUCKEE DONNER
PUBLIC UTILITY DISTRICT, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
1. The Truckee Donner Public Utility District shall have a program for the enforcement of
RPS program, which shall include all of the provisions set forth herein and shall be known
as the City's "RPS Enforcement Program";
2. The RPS Enforcement Program shall be effective January 1, 2012;
3. Not less than ten (10) days' advance notice shall be given to the public before an
meeting is held to make a substantive change Enforcement a to the RPS Enforc Program, y
4. Annually, the General Manager of the Truckee Donner Public Utility shall cause to be
reviewed, the Truckee Donner Public Utility District's RPS Procurement Plan to determine
compliance the RPS program;
5. Annual review of the RPS Procurement Plan shall include consideration of each of the
following elements:
A. By December 31, 2013 (end of Compliance Period 1):
• Verify that Truckee Donner Public Utility District has met an average of twenty
percent (20%) of retail sales with eligible renewable re
9 sources for the period
January 1, 2011 to December 31, 2013.
• If targets are not met, the Truckee Donner Public Utility District must:
o Ensure than any Waiver of Timely Compliance was compliant with the
provisions in the RPS Procurement Plan,
o Review the applicability and appropriateness of excusing performance based
on the Cost Limitations on Expenditures provisions of the RPS Procurement
Plan.
Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program
Page 4 of 6
B. By December 31, 2014:
• Ensure that the Truckee Donner Public Utility District is making reasonable
progress toward meeting the December 31, 2016 compliance obligation of twenty-
five percent (25%) of retail sales with eligible renewable resources, consistent with
the RPS Procurement Plan.
C. By December 31, 2015:
• Ensure that the Truckee Donner Public Utility District is making reasonable
progress toward meeting the December 31, 2016 compliance obligation of twenty-
five percent (25%) of retail sales with eligible renewable resources, consistent with
the RPS Procurement Plan.
D. December 31, 2016 (end of Compliance Period 2):
• Verify that the Truckee Donner Public Utility District has met twenty-five percent
(25%) of retail sales with eligible renewable resources for the period ending
December 31, 2016;
• If targets are not met, the Truckee Donner Public Utility District must:
o Review the applicability of applying Excess Procurement from Compliance
Period 1 consistent with the provisions of the RPS Procurement Plan,
o Ensure than any Waiver of Timely Compliance was compliant with the
provisions in the RPS Procurement Plan,
o Review applicability and appropriateness of excusing performance based on
the Cost Limitations on Expenditures provisions of the RPS Procurement Plan.
E. By December 31, 2017:
• Ensure that the Truckee Donner Public Utility District is making reasonable
progress toward meeting the December 31, 2020 compliance obligation of thirty-
three percent (33%) renewable resources electricity, consistent with the RPS
Procurement Plan.
F. By December 31, 2018:
• Ensure that the Truckee Donner Public Utility District is making reasonable
progress toward meeting the December 31, 2020 compliance obligation of thirty-
three percent (33%) renewable resources electricity, consistent with the RPS
Procurement Plan.
G. By December 31, 2019:
• Ensure that the Truckee Donner Public Utility District is making reasonable
progress toward meeting the December 31, 2020 compliance obligation of thirty
three percent (33%) renewable resources electricity, consistent with the RPS
Procurement Plan.
H. December 31, 2020 (end of Compliance Period 3), and annually thereafter,
• Verify that that the Truckee Donner Public Utility District met thirty-three percent
consistent with th
(33%) of retail sales with eligible renewable resources
e RPS
Procurement Plan;
Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program
Page 5 of 6
• If targets are not met, the Truckee Donner Public Utility District must:
o Review the applicability of applying Excess Procurement from a previous
Compliance Period consistent with the provisions of the RPS Procurement
Plan,
o Ensure than any Waiver of Timely Compliance was compliant with the
provisions in the RPS Procurement Plan,
o Review applicability and appropriateness of excusing performance based on
the Cost Limitations on Expenditures provisions of the RPS Procurement Plan.
6. If it is determined that the Truckee Donner Public Utility District has failed to comply
with the provisions of its RPS Procurement Plan, the Board of Directors shall take
steps to correct any untimely compliance, including:
A. review the Truckee Donner Public Utility District's RPS Procurement Plan to
determine what changes, if any, are necessary to ensure compliance in the next
Compliance Period;
B. report quarterly to the Board of Directors regarding the progress being made
toward meeting the compliance obligation for the next Compliance Period;
C. report to the Board of Directors regarding the status of meeting subsequent
compliance targets, and all steps being taken to ensure that the obligation is timely
met.
7. Effective Date: This Resolution shall be effective on January 1, 2012.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within
the district on the 7th day of December 2011 by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
President
ATTEST:
Michael D. Holley, Clerk of the Board
Adopting a Program for the Enforcement of the Renewable Portfolio Standard Program
Page 6 of 6
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