TO:
Honorable Mayor Powell and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Tony Olmos, Public Works Director
Sona Coffee, Environmental Programs Manager
SUBJECT:Title
Consideration of Adoption of Resolution No. 14-0067 Authorizing the City to Participate in a Feasibility Study of Community Choice Aggregation (Public Works Director Olmos).
ADOPT RESOLUTION NO. 14-0067
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Recommended Action
RECOMMENDATION:
Staff Recommends that the City Council adopt Resolution No. 14-0067 to support the City's participation in a feasibility study of Community Choice Aggregation for the City of Manhattan Beach.
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FISCAL IMPLICATIONS:
There is no fiscal impact beyond staff time arising from the City Council's adoption of Resolution 14-0067 which authorizes staff to participate in the pre-development exploration and feasibility phase of Community Choice Aggregation (CCA). The South Bay Clean Power Working Group intends to pursue grant funds to cover the cost of the feasibility study. If they are unable to secure grant funding, staff will present any funding requests for Council consideration at a future City Council meeting.
BACKGROUND:
On March 29, 2014, the City hosted a community forum as part of its Earth Hour initiative to discuss options that would bring the City of Manhattan Beach to 100% renewable energy by 2025. One of the options presented by a representative from Sonoma County was Community Choice Aggregation. The topics were well received by the community, with over 100 members in attendance. That evening over 500 members of the community participated in an Earth Hour demonstration on the Manhattan Beach Pier to show their support for renewable energy.
What is Community Choice Aggregation?
Community Choice Aggregation, also commonly referred to as Community Choice, enables local governments to procure or develop power on behalf of municipal facilities, residents and businesses. Community Choice creates a functional partnership between the municipality and existing utility (Southern California Edison). Community Choice energy programs were made possible by Assembly Bill 117 in 2002, and have worked successfully in California and across the country. Recent examples in California are Marin Clean Energy and Sonoma Clean Power. These entities provide their customers with baselines of 33% renewable energy and 50% renewable energy respectively, at rates for both residents and businesses slightly lower than the utility rates from PG&E, while 100% renewable energy is available at a slightly higher cost than the standard utility rate.
Community Choice in the South Bay
The South Bay Clean Power Working Group (South Bay Clean Power), an ad hoc citizens group with members from Hermosa Beach, Manhattan Beach, Redondo Beach and Torrance, is working to educate policymakers and other stakeholders about the potential for Community Choice Aggregation in the South Bay region. South Bay Clean Power is a member of the Local Energy Aggregation Network (LEAN) and the Californians for Energy Choice coalition.
In June of 2014, South Bay Clean Power provided assistance to several communities and actively opposed AB 2145, a bill that would have restricted the use of Community Choice energy programs. On June 17, 2014, the Manhattan Beach City Council voted to oppose AB 2145 because the legislation would make it difficult for local governments to pursue Community Choice energy programs as an alternative to traditional utilities. Other local governments that opposed the legislation to dismantle Community Choice energy programs include: Beverly Hills, Hermosa Beach, Santa Monica, and the County of Los Angeles. The City of Manhattan Beach sent an additional opposition letter in August 2014, stating its continued opposition to AB 2145 and its amendments. The proposed bill did not pass, and the original legislation enacting Community Choice programs remains in place.
Communities in the South Bay are looking into the possibility of pursuing Community Choice energy programs. The Torrance City Council will receive a student project from the USC Price School of Policy examining the feasibility of a Community Choice power program. These study results will be completed in December 2014 and the data will be available to Manhattan Beach and other South Bay Cities. The City of Hermosa Beach received a similar student research project from UCLA's Institute of the Environment, and Manhattan Beach was listed as a candidate for partnering on a Community Choice program. On September 10, 2014 the Hermosa Beach City Council passed a resolution to participate in a feasibility study of Community Choice Aggregation.
DISCUSSION:
The South Bay Clean Power Working Group is requesting the City of Manhattan Beach to join with other cities to participate in the pre-development and feasibility phase of a Community Choice Aggregation program. A Community Choice energy program is intended to lower electric rates, provide the South Bay with more control of its electric energy future, and increase the amount of renewable energy being used by residents and businesses in the South Bay. Ultimately, Community Choice energy programs allow local communities to take control of the decision-making about the sources of electrical power.
California's two operating Community Choice programs in Marin and Sonoma counties are already exceeding the state's renewable portfolio standard, and are doing so at lower prices to customers than the existing utility. Over a dozen other California cities and counties are preparing similar programs to provide a wide array of strong community benefits including greatly expanded local renewable energy and energy efficiency, stimulation of local economies by localizing energy spending, and increased clean energy sector jobs.
Participation in a Community Choice feasibility study falls in line with the City's Strategic Goal to: "Enhance, Preserve, and Protect the Environment and Health of Our Beach Community." The City has a communitywide goal to reduce its greenhouse gas emissions, and a long history of supporting efforts that lead to climate protection. Community Choice is a tool local government can use to meet greenhouse gas emissions reduction goals. Further, exploring a Community Choice program would give the City an opportunity to offer its citizens a renewable alternative to meet their electricity needs.
Funding from the City is not requested or committed as part of the resolution. Any funds that may be requested for the feasibility study will come to City Council for approval. In addition, the South Bay Clean Power group is seeking grant funds for the feasibility study, as well as the support of partner cities. Several sources for grant funds are available, and include the: California Coastal Commission, U.S. Department of Energy, California State Coastal Conservancy, California Strategic Growth Council, EPA Pollution Prevention Grant Program, NOAA Sea Grant Funding Supports Community Climate Adaptation, and Proposition 39 - California Clean Energy Jobs Act.
CONCLUSION:
Manhattan Beach has consistently been a strong supporter of fiscally responsible programs that reduce greenhouse gas emissions in the community. Studying the feasibility of a Community Choice program would give the City the option to offer competitively-priced renewable energy to Manhattan Beach residents and businesses.
Staff recommends that City Council adopt Resolution No. 14-0067 to support the City's participation in a feasibility study of Community Choice Aggregation for the City of Manhattan Beach.
Attachment:
1. Resolution No. 14-0067