Loading...
HomeMy WebLinkAbout9/4/2018 Item 2, Hill ��� � �:c�ur�ci� N��mc�r�r�dum . DATE: September 4, 2018 TO: City Council FROM: Robert Hill, Interim Deputy Director, Office of Sustainability VIA: Derelc Johnson, City Manager pC�,� PREPARED BY: Chris Read, Sustainability Manager SUBJECT: Community Choice Energy Study Session Questions Several questions have been presented to staff regarding Item #2 on the September 4, 2018 City Council meeting agenda(Community Choice Energy Study Session). The questions are presented in bold, followed by staff's response. Packet page 24—the 3rd paragraph refers to needing to put aside other Climate Action goals in order to do CCE. What are examples of what we might need to put aside? Is there is a cheaper way to do CCE? If we can have cheaper, faster, easier CCE and accomplish the GHG benefit, while retaining the resources to do more elsewhere, how is that not better? Launching a CCE program requires a substantial amount of work. Staff have not created a CCE program before and will need to make sure enough capacity exists to launch the new enterprise and be prepared to both proactively and reactively deal will challenges. The need for staff capacity should decrease as the CCE begins building its own capacity and has its own resources. Under the Morro Bay/ San Luis Obispo 7PA approach, the intention is for the JPA to quickly get to self- sufficient operation and expand its members' abilities to implement more climate related actions in upcoming years (i.e. after launch in 2020). One of the findings of the Technical Study (Attachment A of the Council Agenda Report) that is reinforced with SB100 passing both houses of the state legislature last week, is that PG&E will likely provide a mostly carbon free electricity portfolio in the next several years. The value proposition for a local CCE, then, is the ability to locally control the $9-12 million after year 3 in net revenues identified in the Technical Study. These dollars could be spent encouraging local energy generation projects, on efficiency or conservation programs, or on accelerating the pace of switching to clean electricity in the transportation and natural gas sectors,all of which could have the additional benefit of contributing to the local economy. The question before Council is if the risk and cost are worth the local control in how we spend that money and in ensuring that those dollars benefit the residents and businesses in our City/region. It is staff's recollection that the cost of losing direct local control of the dollars mentioned above was Community Choice Energy Study Session Questions Page 2 the tradeoff that Council evaluated during December 2017 study session before directing staff to proceed on creating a local CCE. What is the difference between "Renewable Portfolio Standard " and "GHG Free" energy? When the legislature created the Renewable Portfolio Standard, they created a legal definition operationalizing the term "renewable energy" to include only those without substantial risks or environmental impacts. The term includes solar, wind, biomass, and small hydroelectric. Under state law, Renewable Energy is a subset of greenhouse gas (GHG) free energy. GHG free energy refers to energy generation that does not create GHGs. It includes "Renewables" as well as those GHG free sources excluded from the legal defmition (e.g., nuclear and large hydroelectric). Page 67, second paragraph under Section 3.1. - Describe how the JPA format proposed in the Council Agenda Report creates "local control." The creation of a JPA assumes at least two member agencies, and therefore assumes that Morro Bay is participating. If Morro Bay declines to participate,the City of San Luis Obispo City Council would need to weigh the options identified in the "Alternatives" section of the Council Agenda Report. In the scenario where the two cities move forward and create a JPA, there would be two Directors from each city, for a total of four Directors. In this scenario, '/z of the Directors would be from SLO. Should the JPA grow to include more members, say five for example,the City would have 1/5 of the Duectors.Additionally,the Executive Duector and JPA staff(should the JPA chose to hire additional staff over time)would likely be located in or near the city. A local program could mean higher levels of influence and authority. The only CCE program that staff is aware of that the City could potentially join is Monterey Bay Community Power (MBCP). At Council's direction, staff could reengage MBCP's management regarding the opportunity to join the existing program. Membership in MBCP would mean the City is one of 20 members in an organization that is located in a different county, meaning our influence and authority would be greatly reduced. Staf�s recollection is that this is one of the compelling reasons Council wanted to create a new locaUregional program. Page 68, Section 3.4 - Is there any specific envisioning of how the Executive Director would work here? Section 3.4 is written to retain maximum flexibility for hiring and employing an Executive Director (ED). Staff brainstormed several potential hiring scenarios, the most likely of which include: � Contract with CCCE— Staff could imagine contracting with an ED for a set term (e.g., 2- 3 years)to get the agency up and running. A contract employee would be the simplest way to hire a prospective ED in this circumstance. � CCCE employee —Staff assumes the agency would want the authority to hire its own ED and employees. This provision provides that authority. • Member agency employee — Staff included this option to provide for flexibility in several Community Choice Energy Study Session Questions Page 3 scenarios. First, if the SLO/Morro Bay JPA moves forward, the Board of Directors will have to be seated so the Implementation Plan can be filed in calendar year 2018. This provision allows existing staff to be an interim ED far this purpose, and for related initial activities purposes. Second, the provision allows, should a member City and the CCE Board desire, for a City to hire the ED. In this scenario, the City would pay and provide benefits to the ED, and be reimbursed by the JPA for the costs incurred. Page 69, Section 3.5. -Is the Operations Board like a TAC (Technical Advisory Committee)? Seems like what would happen is that the City Manager would delegate to a city employee who would have the expertise and time to do the major work that is envisioned here. Yes, that is correct. The Operations Board would be subject to the Brown Act. If you have any questions, please contact Chris Read, Sustainability Manager at (805) 781-7151 or cread@slocity.org..