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Wni R tvtaUv ii == RIVERSIDE PUBLIC UTILITIES WON Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: OCTOBER 24, 2016 ITEM NO: 9 SUBJECT: APPROVE THE SENATE BILL 1368 COMPLIANCE FILING TO THE CALIFORNIA ENERGY COMMISSION FOR PARTICIPATION IN THE INTERMOUNTAIN POWER REPOWERING PROJECT ISSUE: Approve the Senate Bill 1368 Compliance Filing to the California Energy Commission for participation in the Intermountain Power Repowering Project. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the attached Senate Bill 1368 Compliance Filing package to the California Energy Commission for potential participation in the Repowering of Intermountain Power Project; and 2. Authorize the City Manager or his designee, to execute any documents necessary to complete and submit the Compliance Filing. LEGISLATIVE HISTORY: Legislative Requirements: Senate Bill 1368 (SB 1368), enacted in 2006, limits investments in long -term resources to those meeting California's Emission Performance Standard (EPS). The implementing regulations (Title 20 Sections 2908 and 2909) require that publicly -owned utilities, such as Riverside, submit a Compliance Filing (Attachment 1) to the California Energy Commission (CEC) within ten (10) business days of entering into a "covered procurement" such as the Intermountain Power Project Repower Project. Prior to submitting to the CEC, the governing body must approve the Compliance Filing, and post a public notice whenever its governing body will deliberate in public (Attachment 3). Such filing must be provided to the CEC concurrent with Riverside's posting of the City Council meeting. The CEC will then evaluate and verify the POU's covered procurement's compliance with the EPS. BACKGROUND: Intermountain Power Project (IPP) Overview. In 1980, Riverside entered into the current IPP Power Sales Contract (Contract) with the Intermountain Power Agency (IPA) for the purchase of baseload coal -fired electric power and the associated transmission services. The IPP project currently consists of 1,800 megawatts (MW) of coal generation located near Delta, Utah and the associated transmission facilities. There are 36 participants in IPP, including six from California (Riverside, Los Angeles, Anaheim, Burbank, Glendale and Pasadena). LADWP is the Operating Agent for the generating and transmitting facilities. The current Contract terminates on June 15, 2027. Pursuant to the Contract, IPA must offer any renewal of IPP beyond the current term of the Contract, to existing participants. In 2006, California enacted SB 1368, that prohibits California participants, including Riverside, from renewing participation in IPP (a baseload fossil -fuel generation plant) beyond the current contract term. The EPS regulations set an emissions standard of 1,100 lbs. of carbon dioxide per MW hour for new