10-25-2021 BPU RPT 14 - Laserfiche WebLink

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- RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: OCTOBER 25, 2021 SUBJECT: ADOPT REVISIONS TO THE CITY OF POLICY ON THE PERMISSIBLE USE OF GREENHOUSE GAS ALLOWANCE VALUE AND PROCEEDS ISSUE: Consider recommending that the City Council adopt revisions to the City of Riverside Policy on the Permissible Use of Greenhouse Gas Allowance Value and Proceeds. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council adopt revisions to the City of Riverside Policy on the Permissible Use of Greenhouse Gas Allowance Value and Proceeds. COMMITTEE RECOMMENDATION: On September 8, 2021, the Electric Committee with Chair Oceguera and Members Heru and Use of Greenhouse Gas Allowance Value and Proceeds. Following discussion, the Committee recommended the following change to the City of Riverside Policy on the Permissible Use of Greenhouse Gas Allowance Value and Proceeds: Section V.a. Investments/Costs associated with existing or renewable resources; be revised to Investments/Costs associated with existing and/or new renewable resources. The Committee unanimously voted to recommend approval of the revisions to the Allowance Value and Proceeds to the Board of Public Utilities. LEGISLATIVE HISTORY: Assembly Bill (AB) 32, enacted in 2006, mandates the California Air Resources Board (ARB) to develop regulations to limit greenhouse gas (GHG) emissions to 1990 levels by 2020. In December 2011, ARB developed its framework, associated regulations, and market mechanisms to implement AB 32, effective January 1, 2012. Two (2) subsequent bills, Senate Bill (SB) 32 in 2016 and AB 398 in 2017, established new GHG emissions reduction targets and extended the authorization to use market mechanisms to meet these targets. Specifically, SB 32 expands the limit on GHG emissions to 40% below 1990 levels by 2030, and AB 398 permits the continued use of the Cap and Trade Program through 2030.