11-25-2019 BPU RPT 13 - Laserfiche WebLink

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W A T E R E N E R G Y T I F F V" RIVERSIDE PUBLIC UTILITIES fifflwrll� id& P U B LTC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: November 25, 2019 ITEM NO: 13 SUBJECT: POWER PURCHASE AGREEMENT WITH CAMINO SOLAR, LLC FOR A PHOTOVOLTAIC AND BATTERY ENERGY STORAGE PROJECT FOR A TERM OF 15 YEARS FOR AN ESTIMATED AVERAGE ANNUAL COST OF $4,780,000 ISSUE: Approve the Power Purchase Agreement with Camino Solar, LLC for a Photovoltaic and Battery Energy Storage Project to provide renewable solar photovoltaic energy, battery energy storage, associated environmental attributes and capacity rights to the City for a term of 15 years for an estimated average annual cost of $4,780,000. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Power Purchase Agreement with Camino Solar, LLC for a Photovoltaic and Battery Energy Storage Project to provide renewable solar photovoltaic energy, battery energy storage, associated environmental attributes and capacity rights to the City for a term of 15 years at an estimated average annual cost of $4,780,000; and 2. Authorize the City Manager, or designee, to execute the Power Purchase Agreement and all documents necessary to administer the Agreement including the ability to make non substantive changes, as well as to execute future amendments to the Power Purchase Agreement under terms and conditions substantially similar or superior to the Power Purchase Agreement or, if needed, to terminate the Power Purchase Agreement in accordance with Agreement terms and conditions. LEGISLATIVE HISTORY: In 2011, the California Renewable Energy Resources Act, Senate Bill (SB) X 1-2, was signed into law by the Governor, which mandated that all electric utilities, including Riverside Public Utilities (RPU), procure increasing amounts of renewable energy primarily from in-state resources to serve its retail needs during specified compliance periods. SB X1-2, which officially created the first set of tiered Renewable Portfolio Standard (RPS) targets, requires RPU to supply 20%, 25% and 33% of retail energy needs using renewable resources by 2010, 2015 and 2020, respectively. In 2015, the Governor signed into law, the Clean Energy and Pollution Reduction Act, SB 350, which further increased the RPS goal to 50% by 2030. This was followed in 2016 with the Governor's approval of SB 32, which required the state board to ensure that statewide greenhouse gas emissions are reduced to 40% below the 1990 level by 2030.