SR-01-13-2015-3LCity Council Meeting: January 13, 2015
Agenda Item: °L
To: Mayor and City Council
From: Dean Kubani, Manager - Office of Sustainability and the Environment
Subject: Resolution to Participate in Community Choice Aggregation Feasibility
Study
Recommended Action
Staff recommends that the City Council approve the attached resolution of participation
to study the feasibility of Community Choice Aggregation, which allows cities and
counties to aggregate the buying power of individual customers within a defined
jurisdiction in order to secure alternative energy supply contracts on a community -wide
basis.
Executive Summary
The City of Santa Monica has been invited to participate in a feasibility study of a
Community Choice Aggregation (CCA) energy program for the South Bay region. If
implemented the CCA could provide residential, commercial, and institutional energy
customers in Santa Monica with options to purchase up to 100% renewable electricity at
competitive rates, helping the City to achieve its greenhouse gas emission reduction
targets. In order to participate in the feasibility study Council must adopt the attached
resolution. The resolution is non - binding and there is no cost to the City to participate in
this study.
Background
On February 26 2013 Council adopted the 15x15 Climate Action Plan and established
additional community greenhouse gas emissions reduction targets of 30% reduction of
emissions below 1990 by the year 2030 and 80% reduction below 1990 levels by 2050.
Achieving these aggressive reduction targets will require a concerted effort across all
sectors of the community to shift to away from fossil fuel use in favor of renewable
sources of energy.
1
On May 27 2014 Council voted to oppose California Assembly Bill 2145, which would
have modified the rules for Community Choice Aggregation (CCA) that allow
communities to use their collective buying power to purchase renewable power
contracts, using the existing electrical grid. AB 2145 would change CCAs in California
from "opt -out" systems and instead require individual residents to "opt -in," making it
much harder for cities such as Santa Monica to attain carbon emission goals. AB 2145
was placed in suspension in August 2014 and eventually died.
Discussion
Community Choice Aggregation (CCA) enables local governments to procure or
develop power on behalf of municipal facilities, residents and businesses. CCA creates
a functional partnership between the municipality and existing utility, allowing local
communities to take control of the decision making about the sources of the electrical
power, with the utility continuing to provide the transmission of that power. CCA energy
programs were made possible in California by Assembly Bill 117 in 2002. Passage of
this bill resulted in the establishment of several CCA programs in the state in recent
years. The largest of these programs are Marin Clean Energy and Sonoma Clean
Power. They purchase renewable power on the open market from independent solar,
wind and geothermal energy producers and provide 33 %, 50% and 100% renewable
power mixes to customers in numerous cities within their jurisdictions. Both of these
CCA programs are providing higher renewable power mixes than the existing utility at a
lower cost to the customer, and 100% renewable power at costs that are just slightly
higher than the existing utility costs for non - renewable power. Currently no CCA
program exists in Southern California.
The South Bay Clean Power Working Group (South Bay Clean Power), an ad hoc
citizens group with members from Hermosa Beach, Manhattan Beach, Redondo Beach,
and Torrance is actively evaluating the possibility of creating a CCA for the South Bay
region. The stated goals for this program include providing a secure energy supply at
2
stable and competitive prices to customers as well as reducing greenhouse gas
emissions by stimulating and sustaining the development and use of renewable energy.
The first step in developing a CCA is to conduct a technical and financial feasibility
study, and determining the level of community support for such a program. South Bay
Clean Power is coordinating an effort to identify sources of grant funding to conduct a
feasibility study for a South Bay area CCA and has asked Santa Monica to consider
adopting a non - binding resolution to participate in a feasibility study with other area
cities if such a study is ultimately funded. To date the cities of Hermosa Beach and
Manhattan Beach have adopted resolutions. Several other South Bay cities, including
Redondo Beach, Torrance and Carson are considering adopting similar resolutions to
participate in the near future. The participating cities are not being asked to fund the
study.
At their November 17, 2014 meeting the Santa Monica Task Force on the Environment
discussed CCA and unanimously adopted the following motion:
The Task Force on the Environment recommends that City Council adopt a non-
binding resolution to join with other local cities to participate in a feasibility study
of Community Choice Aggregation.
V
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of
adopting the attached resolution.
Prepared by: Dean Kubani - Sustainability Manager
Approved:
4�Z- I `
Dean Kubani
Sustainability Manager, Office of
Sustainability and the Environment
Attached: Resolution
2
Forwarded to Council:
Rod Gould
City Manager
Reference:
Resolution No. 10854
(CCS)