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Home My WebLink AboutCC AG PKT 2008-08-11 #E• AGENDA STAFF REPORT DATE: August 11, 2008 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Linda Devine, City Clerk SUBJECT: CONSIDERATION OF ADOPTION OF RESOLUTION IN OPPOSITION TO THE RENEWABLE ENERGY STATUTE (AG #07-0066) SUMMARY OF REQUEST: It is recommended that the City Council adopt a resolution in opposition to the Renewable Energy Statute (AG#: 07-0066) initiative headed for the November 2008 California state ballot. BACKGROUND: Southern California Edison Company has requested that the City of Seal Beach pass a resolution in opposition to the renewable energy initiative, entitled the Solar and Clean Energy Act of 2008, that has recently qualified for the November 2008 California state ballot. This initiative attempts to address global warming and climate change by requiring all electric utilities to produce fifty percent (50%) of their electricity from clean energy sources like solar and wind by 2025. Current law requires retail electricity providers to increase their share of electricity generated from renewable sources by at least one percent per year so that, by the close of 2010, twenty percent (20%) of their electricity is generated from renewable sources. However, the initiative contains language that affects local governments by way of permitting controls and potential rate increases. The proposed Solar and Clean Energy Act of 2008 is an initiative that seeks to put California on the path to energy independence. However, it contains language that could significantly impact the costs and controls of local governments. The biggest impact on local government comes in the form of a change in the • permitting authority over electricity infrastructure. Currently, most electricity generating facilities and electricity distribution lines are permitted by local Agenda Item E Page 2 government, with the exception of hydroelectric (dams) and thermal electricity • facilities. However, this initiative includes language that changes the permitting authority from local government to the state's Energy Resources Conservation and Development Commission (Energy Commission). Specifically, the Energy Commission is granted the authority to permit new non-thermal renewable energy power plants capable of producing thirty (30) megawatts of electricity or more, as well as related infrastructure, such as electricity transmission lines that unite the plant with the transmission network grid. This permitting authority currently rests with local governments. Secondly, this initiative has a potential affect on rates. According to the state's Legislative Analyst's Office this measure could result in higher electricity rates, particularly in the short term, to the extent that there is increased procurement of more expensive renewable energy that would not occur but for the measure's mandates. Any changes in electricity rates would affect government costs as local governments are large consumers of electricity. However, the increase in costs due to increased electricity rates could be offset to an unknown degree by longer-term cost savings, to the extent that the initiative advances development of renewable energy resources so as to lower their cost from what they otherwise would be. A representative from the League of California Cities has indicated that they will take a position of opposition to this ballot initiative; however, this had not been • done at the time this report was written. FINANCIAL IMPACT: None associated with the adoption of the resolution. RECOMMENDATION: It is recommended that the City Council adopt a resolution in opposition to the Renewable Energy Statute (AG#: 07-0066) initiative headed for the November 2008 California state ballot. SUBMITTED BY• NOTED AND APPROVED: ~.% ~- in a Devine, City Clerk David Carmany, City Manager Attachments: A. Resolution • RESOLUTION NUMBER 5770 • A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA IN OPPOSITION TO THE RISKY ENERGY INITIATIVE (AG#: 07-0066) WHEREAS, a proposed energy proposition, headed for the November 2008 ballot, would set arbitrary and unrealistic goals for renewable energy consumption in California; and WHEREAS, this poorly written initiative was drafted by a handful of lobbyists and lawyers and funded by one out-of-state billionaire with no energy expertise; and WHEREAS, California's leading environmental organizations, renewable energy providers, and clean power experts all oppose this proposition and warn that the measure is "fatally flawed," that it "could slam the brakes on renewable energy development in the state," and "jeopardize achievement of (California's) near-term 20 percent requirement;" and WHEREAS, this measure would erode local control and negatively impact local governments, community choice aggregation and municipal utilities in California by imposing new statewide, top-down mandates for renewable power that are inflexible; and WHEREAS, the measure further pre-empts local control by specifically removing existing permitting authority away from cities and counties for the approval of certain renewable energy power plants and related infrastructure, • and by giving that authority to a state bureaucracy; and WHEREAS, the state's non-partisan legislative analyst says the measure could "result in higher electricity rates" and have "potential unknown increased costs and reduced revenues, particularly in the short term, to state and local governments resulting from the measure's potential to increase retail electricity rates...;" and WHEREAS, California recently announced aworld-leading plan to combat global climate change that includes strong new requirements that will encourage the use of more renewable power sources in the near future and we need to give this plan time to work; and WHEREAS, this new proposition will actually stop progress we're making and could lead to higher rates, less renewable power, and another energy crisis; and WHEREAS, a broad coalition ,of environmental organizations, local governments, business organizations, taxpayer groups, organized labor and others have come together in opposition to this risky energy proposition, and have formed a coalition called "Californians Against Another Risky Energy Proposition." NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Seal Beach hereby oppose the "Renewable Energy Statute (AG#: 07-0066)" initiative headed for the November 2008 ballot. BE IT FURTHER RESOLVED that we hereby authorize the listing of Seal • Beach informal opposition of this initiative and as a member of Califomians Against Another Risky Energy Proposition. Resolution Number 5770 PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a meeting hereof held on the 11th day of August , 2008 by the • following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number 5770 on file in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach, at a regular meeting held on the 11th day of Auoust , 2008. • City Clerk •