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RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br />BOARD OF PUBLIC UTILITIESDATE:JANUARY 8, 2017 <br />ITEM NO: 9 <br />SUBJECT:FIVE-YEAR POWER SALES AGREEMENT BETWEEN SOUTHERN CALIFORNIA <br />PUBLIC POWER AUTHORITY AND THE CITY OF RIVERSIDEFOR 0.8 MEGAWATTS <br />FROM THE AMERICAN RENEWABLE POWER-LOYALTON BIOMASS PROJECTTO <br />COMPLY WITH SENATE BILL 859–ESTIMATED $620,000 ANNUAL COST <br />ISSUE: <br />Approve aFive-Year Power Sales Agreement between Southern California Public Power Authority and <br />the City of Riverside for 0.8megawatts from theAmerican Renewable Power-Loyalton Biomass Project <br />to comply with Senate Bill 859for the estimated annual cost of $620,000. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities: <br />1.Approve the five-year Power Sales Agreement between Southern California Public Power <br />Authority and the City of Riversideto provide renewable biomass energy and renewable energy <br />credits from the American Renewable Power-Loyalton Biomass Project; <br />2.Authorize the City Manager or his designee to executeor terminatethe Power Sales <br />Agreement, as well as future amendments to thePower Sales Agreement,under terms and <br />conditions substantially similar or superior to the Power Sales Agreement; and <br />3.Authorize the City Manager or his designee to execute any documents necessary to administer <br />the Power Sales Agreement. <br />BACKGROUND: <br />Effective September 14, 2016,California Senate Bill (SB) 859 mandated that allinvestor-owned utilities <br />andpublicly owned utilities (POUs) serving more than 100,000 customersprocurea proportionate share <br />of 125 megawatts (MW)of electric generation from biomass-fueled resources. SB 859further required <br />that the biomass-fueled resource be located in California and commence operations prior to June 1, <br />2013. The fuel source must also meet the following requirements: <br />1.At least 80% of the feedstock of an eligible facility, on an annual basis, shall be a byproduct of <br />sustainable forestry management, which includes removal of dead and dying trees from Tier 1 <br />and Tier 2 hazard zones that have not been clear cut. <br />2.At least 60% of the feedstock shall be sourced from designated Tier 1 and Tier 2 high hazard <br />zones. <br />Page 51 <br /> <br />