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HomeMy Public PortalAboutRES-CC-2018-57CITY OF MOAB RESOLUTION NO. 57-2018 A RESOLUTION AUTHORIZING THE MAYOR TO SIGN A MEMORANDUM OF UNDERSTANDING WITH ROCKY MOUNTAIN POWER MEMORIALIZING THE JOINT CLEAN ENERGY COOPERATION STATEMENT WHEREAS, the City of Moab ("City") has set ambitious renewable energy goals for both municipal functions and the community as a whole; and WHEREAS, Rocky Mountain Power ("RMP") and the City desire to work cooperatively to support the City's energy goals as identified in the proposed Memorandum of Understanding using programs and innovative technologies that may be unique to the City and will be further developed through ongoing feasibility and implementation work; and WHEREAS, the proposed MOU memorializes the City and RMP's stated intent; THEREFORE, be it resolved that the City of Moab City Council hereby approves this Resolution authorizing the Mayor of Moab to sign the attached MOU titled "THE CITY OF MOAB, UTAH AND ROCKY MOUNTAIN POWER JOINT CLEAN ENERGY COOPERATION STATEMENT" on behalf of the City to effectuate that desire. This Resolution shall take effect immediately. Passed and approved by action of the Governing Body of the City of Moab in open session on this 11th day of December, 2018. SIGNED: Emily S. Niehaus, Mayor Rachel Stenta, City Recorder ATTEST: THE CITY OF MOAB, UTAH AND ROCKY MOUNTAIN POWER JOINT CLEAN ENERGY COOPERATION STATEMENT Moab City Municipal ("City"), a Utah municipal corporation, and PacifiCorp dba Rocky Mountain Power, an Oregon corporation ("Company), jointly state their intention to cooperate in accordance with the below stated objectives. Overview The City is responsible for protecting the public health and safety of its residents, which includes facilitating access to clean air, dependable and affordable energy, clean water and a livable environment. The Company is an investor owned electric utility regulated by the Public Service Commission of the State of Utah ("PSC") with a responsibility for providing safe and reliable electrical service to its customers by means and at rates that are fair, just and reasonable as determined by the PSC. The City has determined that meaningful reductions in pollution and greenhouse gas emissions will benefit all City residents, visitors, businesses and Utah as a whole, through improved public health, additional economic opportunities, long-term energy price stability and a stronger sense of community security. The City and the Company desire to work cooperatively to support the City's energy goals as identified herein using programs and innovative technologies that may be unique to the City and will be further developed through ongoing feasibility and implementation work. Goals The City is committed to reducing pollution and the carbon intensity of electricity used in the City by both the municipality and general citizenry. The City has set a goal to transition to an annually measured at least 50% net renewable electrical energy portfolio for municipal functions by 2024, 100% net renewable electrical energy portfolio for municipal functions by 2027 and for the community as a whole by 2032. The City desires to accelerate adoption of energy efficiency in the community and for municipal operations because the cheapest, cleanest energy is energy that is not used. This, in turn, will reduce energy costs. The City aspires to the goal that the net -cost changes, if any, to the City or its energy users associated with achieving its stated clean energy goals are reasonable. 1 12/11/2018 version 1.2 The City envisions measures to mitigate any incremental costs associated with pursuing a clean energy future to all City energy users with a high priority placed on preventing negative impacts to low-income residents. The City acknowledges that net lifecycle financial impacts, including both cost and benefits associated with measures used to achieve its energy goals will benefit, and thus be the responsibility of, the City and energy users within the city limits. The City acknowledges that the Company will require PSC approval as to terms, cost and rate relating to services provided by the Company. Further, the City is willing to evaluate cost savings that are mutually beneficial to both RMP and the City in meeting its environmental goals and mandates. The City and the Company mutually agree to work in good faith to develop a local energy system that meets the social, environmental, and economic goals of the City. Renewable Energy, Energy Efficiency and Electric Vehicle Projects The City and the Company will develop a variety of energy efficiency and renewable resource options for all energy users in the City, including residential, commercial, industrial, governmental and non-profit users, to reduce carbon intensity and make significant progress towards the City's reduced emissions and reduced energy usage goals. These options may include remote and locally sited utility -scale solar and regional wind installation solutions, along with customers' ability to net meter their own installations in accordance with existing and future tariffs. The plan will also consider and evaluate the following options for further development: • New Subscriber Solar and Wind. + Evaluation of existing renewable resources to meet city needs and potential retirement of Renewable Energy Credits (RECs). • A customized renewable energy program that addresses the transition from coal -based generation to renewable and the associated costs. The City and the Company will work together on programs that may include energy efficiency, demand response, energy storage and renewable energy projects, including programs designed to provide energy users within the City the ability to purchase the output of regional renewable energy facilities. The City and the Company will jointly evaluate new technologies such as smart grid and customer -side investments designed to allow efficient utilization of resources, reduced greenhouse gas emissions and deployment of renewable energy and electric vehicle ("EV") charging infrastructure. 2 12/11/2018 version 1.2 The City and the Company will strive to investigate options to deploy EV infrastructure and innovative technologies to support EVs. Municipal Renewable Energy Projects To facilitate the City's renewable energy and carbon reduction goals for City facilities and increase and expand the City's municipal clean energy portfolio, the municipal government has subscribed to approximately one hundred ninety thousand and eight hundred (190,800) kilo - Watt -hours of Subscriber Solar, 410,400 kilo-watthours of Blue Sky renewable energy, and 139,685 kilo-watthour of distributed energy units on city buildings in 2017 which is approximately 73% of energy for use at various City facilities. To the extent additional solar energy is or becomes available under the Company's. Subscriber Solar program or otherwise, the City may subscribe to additional solar energy for City facilities in the future. The City and the Company intend to cooperate to identify additional avenues for leveraging City assets (e.g., infrastructure and property) and City and Company investments to build additional renewable energy projects to achieve the City's municipal energy goals. Implementation Steps and Timing The City and the Company intend to work together to develop an implementation plan outlining respective roles, processes, responsibilities, timelines, programs, project development pathways and costs to achieve the goals and deliverables outlined in this Cooperation Statement. The target deadline for completion and acceptance of the initial framework of deliverables by the Company and the City is December 31, 2019. The Company desires to assist the City to develop a 10-year load forecast, to be updated as needed, using 2016 as the baseline The City and the Company intend to jointly publish an annual report by March of each year, beginning in 2019, to detail status and progress towards renewable energy, energy efficiency and carbon reduction goals. The City and the Company intend to cooperate in good faith in identifying mutually agreeable projects, programs and the Company will take a leadership role, and City providing support, in identifying, and pursuing the necessary approvals required. The City and the Company intend to work together in good faith to develop and iinplernent projects and programs to help the City achieve its clean energy targets with the understanding that implementing these measures will require entering into contracts and agreements to administer the developed programs and may require commission approval. 3 12/11/2018 version 1.2 Commitment of Cooperation As stated above, the City and the Company desire to work together in good faith to successfully achieve the City's stated goals and the objectives that will be developed over time. Given community- wide renewable percentage is at approximately 4.8% and has an aggressive goal of 100% in less than fifteen years, the City desires to work directly with the Company on its renewable energy supply. This partnership will include the following phases: Phase I: • Design and installation of a production facility owned by RMP and located on the City's Golf Course by 2020. • Design and installation of a solar array at the new Water Reclamation Treatment Plant. Phase II: • Collaborate on legislative approaches to equitably meet our mutual goals. If either the City or the Company has a dispute regarding progress towards objectives outlined in this Cooperation Statement or the timeliness of related implementation, the City Manager and the CEO desire to be directly involved and work together to attempt to resolve whatever issues may arise. This Cooperation Statement shall become effective upon signing by both the City and Company and will inform cooperation between City and Company, likely starting in 2019. Progress towards objectives stated herein will be reviewed and the Cooperation Statement may be extended in the future, with or without amendments, through a commitment by both the City and the Company. IN WITNESS WHEREOF, the parties to this JOINT COOPERATIVE STATEMENT have affixe t 1 r signatu t11L— Deb Dull, Rocky Mountain Power representative Mayor, Emily S. Niehaus Date: /L, c ,.,, 200 Date: / z - aez1/4-a--- Date: rt-i)-1Z� Recorder, Rachel Stenta A 12/11/2018 version 1 2