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Home My WebLink AboutRES 2012-22 - BoardResolution No. 2012 - 22 A RESOLUTION OF THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT ADOPTING A PROGRAM FOR THE CALIFORNIA CAP AND TRADE PROGRAM WHEREAS, in 2006, the State of California adopted into law the California Global Warming Solutions Act of 2006; and WHEREAS, under this law, the State of California has adopted a goal to reduce state-wide emissions of greenhouse gases ("GHG") to estimated levels of the year 1990 by the year 2020; and WHEREAS, the California Air Resources Board ("CARB") has adopted three regulations whose purpose is to achieve the state's GHG reduction goals, including a market -based compliance mechanism commonly referred to as the California Cap -and - Trade Program; and WHEREAS, the District shall register with the CARB under the appropriate registered function and will identify District personnel, as appropriate, such that it will fulfill the first pre -requisite to receive its direct allocation of allowances; and WHEREAS, the District shall identify the appropriate District personnel, as required, including but not limited to Officer(s), one (1) Primary Account Representative, at least one (1) and not more than four (4) Alternate Account Representative(s), and up to five (5) Account Viewing Agents in order to perform various required tasks of the regulations; and WHEREAS, any personnel seeking access to the CARB electronic tracking system, currently referred to as the "Compliance Instrument Tracking System Service" (or "CITSS"), shall fulfill the "Know Your Customer" requirements of the regulations; and WHEREAS, through the cap -and -trade regulations, the CARB will host auctions to sell "allowances" which are effectively permits to emit GHGs; and WHEREAS, the CARB will host the first auction on November 14, 2012; and WHEREAS, beginning 2013, and each year thereafter, the CARB will host auctions on the twelfth (12th) business day of the second month of each calendar quarter; and WHEREAS, the District, through its electric utility, participates in the activities that subjects it to a number of new mandates created under this law and its related regulations, including procuring allowances from the CARB auctions; and WHEREAS, the District electric utility is identified as an "Electric Distribution Utility' under the cap -and -trade regulations and is therefore eligible to receive a direct allocation of allowances at no cost from the CARB; and Resolution 2012 - 22 WHEREAS, the allowances received from CARB under a direct allocation are restricted in their use as are any associated values and market proceeds; and WHEREAS, not later than September 4, 2012, the District's Primary Account Representative, or any Alternate Account Representative whom has proper delegated authority, shall instruct CARB to deposit some of the District's direct allocation of allowances into the District's Compliance Account and the remainder into the District's Limited Use Holding Account; and WHEREAS, not later than September 14, 2012, the District shall receive its direct allocation of allowances; and WHEREAS, not later than November 4, 2012, the District's Primary Account Representative, or any Alternate Account Representative whom has proper delegated authority, shall consign one-third (1/3rd) of the allowances held in the District's Limited Use Holding Account to CARB for the purposes of selling the consigned allowances in the CARE -sponsored Auction; and WHEREAS, not less than seventy-five (75) days prior to a quarterly auction held in 2013 or any year thereafter, the District is required to consign all allowances held in its Limited Use Holding Account to the CARB, or its designee, for sale in quarterly auctions ,^ with a calendar year corresponding to the vintage of said allowances and any vintages of prior years; and WHEREAS, at least thirty (30) days prior to the 2012 and quarterly auctions, the District's Primary Account Representative, or any Alternate Account Representative whom has proper delegated authority, shall register to participate in the auction, to the extent that registration is required in order to consign and sell allowances in the auction; and WHEREAS, this program in no way authorizes District personnel to procure compliance instruments, including allowances from the CARB-sponsored auctions; WHEREAS, this program in no way authorizes District personnel from expending any market proceeds associated with the sale of allowances received through a direct allocation from CARB; and WHEREAS, it is the District's intent to replace or amend this program within twelve (12) calendar months of the adoption of this program to allow time to explore acceptable uses of market proceeds associated with the sale of allowances received through a direct allocation from CARB. NOW, THEREFORE, BE IT RESOLVED that the Truckee Donner Public Utility District does hereby adopt a program for implementation of the California Cap -and -Trade � Program as shown on Exhibit A attached, and this Resolution shall be effective upon adoption of this resolution and shall remain in effect until amended or superseded. 2 Resolution 2012 - 22 e^- 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 fifth day of September, 2012 AYES: Directors Aguera, Bender, Hemig and Laliotis NOES: None ABSTAIN: None ABSENT: None TRUCKEE DONNER PUBLIC UTILITY DISTRICT Tony Laliotis, President ATTEST: A -b Michael D. Holley, P.E. Clerk of the Board 3 Resolution 2012 - 22 Exhibit A Program for the Implementation of the California Cap -and -Trade Program 1. The District shall have a program for the implementation of the California Cap -and - Trade Program, which shall include all of the provisions set forth herein and shall be known as the "District's Cap -and -Trade Implementation Program"; 2. The Cap -and -Trade Implementation Program shall be effective upon adoption by the District Board and shall remain in effect until amended or superseded; 3. The Electric Utility Manager ("EUM") shall be responsible for the administration of allowances received through a direct allocation from the California Air Resources Board ("CARB"); 4. The EUM is hereby authorized to serve as the District's Primary Account Representative ("PAR"), or similar role, and shall perform all duties assigned to that role that are prerequisite or related to the act of consigning allowances to the Executive Officer of CARB, for the purposes of selling said allowances in a CARB- sponsored auction, that are received through a direct allocation; 5. The EUM is hereby authorized to consign allowances to the Executive Officer of CARB, or its designee, for the purposes of selling said allowances in the CARB- sponsored auctions, as required by the regulations; 6. The EUM shall instruct CARB, not later than September 1 of each year, or the first business day thereafter, to transfer some of the District's direct allocation of allowances into the District's Compliance Account and the remainder into the District's Limited Use Holding Account 7. The EUM shall consign, not later than November 2, 2012, one-third (1/3rd) of the allowances in the Limited Use Holding Account, rounded up to the nearest whole integer or block size permitted under the regulations, to the Executive Officer of CARB, or its designee, for the purposes of selling said allowances in the auction scheduled for November 14, 2012; 8. Starting in 2013, and each year thereafter, the EUM shall consign allowances, not less than 75 days before each quarterly auction, to the Executive Officer of CARB, or its designee, for the purposes of selling said allowances in each of the quarterly auctions, in the following proportions: a. For each of the first three (3) quarterly auctions of a calendar year, twenty-five percent (25%), rounded to the nearest whole integer or block size permitted under the regulations, of the balance of the Limited Use Holding Account as of January 1 of the calendar year corresponding to the quarterly auction in which the consigned allowances will be sold; b. For the fourth (4t") quarterly auction, all remaining allowances in the Limited Use Holding Account with vintage years equal to or less than the current calendar year; 9. The EUM shall identify at least one (1) and up to four (4) Alternate Account Representative(s) ("AAR") and shall have the ability to delegate any roles, responsibilities, and powers established under this program to any of the AARs; a. The AARs shall register with the CARB, as required by the regulations; 4 Resolution 2012 - 22 r- 10.The EUM may identify up to five (5) natural persons to act as Account Viewing Agents ("AVA"); a. Any AVAs shall register with the CARB, as required by the regulations; 11. The Cap -and -Trade Implementation Program does not authorize: a. District personnel to directly procure GHG compliance instruments; b. Any use or expenditure of any market proceeds associated with the consignment or sale of allowances received through a direct allocation from the CARB, without further policy direction from this Truckee Donner Public Utility District. 5 Resolution 2012 - 22