Resolution 2024-XX Page 1 of 3
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT
REQUESTING AVA COMMUNITY ENERGY TO ENROLL ALL
RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL ACCOUNTS IN
RENEWABLE 100 ELECTRICITY SERVICE, WITH THE EXCEPTION
OF THOSE PARTICIPATING IN MEDICAL BASELINE, CALIFORNIA
ALTERNATE RATES FOR ENERGY (CARE), FAMILY ELECTRIC
RATE ASSISTANCE (FERA), DIRECT ACCESS ELECTRIC SERVICE
PROGRAMS, OR THOSE WHO HAVE PREVIOUSLY OPTED TO A
SPECIFIC AVA SERVICE LEVEL OR OPTED OUT OF AVA SERVICE;
DETERMINE THAT ACTION IS EXEMPT FROM CEQA
WHEREAS, on November 18, 2008, the Fremont City Council (City Council) adopted a goal of reducing community-wide greenhouse gas (GHG) emissions by 25 percent below 2005 levels by 2020; and
WHEREAS, on November 13, 2012, the City Council adopted its first Climate Action Plan (CAP) for reducing greenhouse gas (GHG) emissions 25 percent by 2020 in alignment with its adopted target, directed staff to begin implementation of the CAP, and established an Environmental Sustainability Commission (ESC) to advise the City Council on CAP updates; and
WHEREAS, on October 10, 2023, the City Council adopted an updated CAP with the goal of reducing community-wide GHG emissions by 30% below 2018 levels or 55% below 2005 levels by the year 2030; and
WHEREAS, Community Choice Aggregation (CCA) programs enable cities and counties to aggregate the buying power of individual customers within their jurisdictions in order to secure more renewable energy; and
WHEREAS, the City Council adopted Ordinance No. 23-2016 on November 15, 2016, joining the Ava Community Energy (formerly East Bay Community Energy) CCA program in furtherance of the 2012 CAP’s stated goal to prioritize renewable energy; and
WHEREAS, all residential, commercial, and industrial accounts were enrolled in Ava’s “Bright Choice” electric service plan by default; and
WHEREAS, Ava’s “Renewable 100” service offers 100% California-based wind and solar-generated power at a price premium of 2.5-4.5% over Bright Choice service; and
WHEREAS, on March 15, 2022, the City Council approved enrollment of all municipal accounts in the Renewable 100 electric service plan; and
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WHEREAS, the 2023 CAP identified a priority action to establish Ava’s Renewable 100 as the default electric service plan throughout Fremont, contributing to Fremont’s transition to clean electricity, which accounts for 18% of the entire 2030 GHG reductions quantified; and
WHEREAS, this change will exempt customers participating in income-qualified programs (California Alternate Rates for Energy/CARE and Family Electric Rate Assistance/FERA), those on Medical Baseline service, those enrolled in Direct Access Service, those who have made a service level election with Ava, and those who have opted out of Ava; and
WHEREAS, this action does not commit customers to remaining on Renewable 100, as customers retain the option to switch back to Ava’s Bright Choice or opt out to PG&E service; and
WHEREAS, according to Ava’s timeline for processing changes to default service, this change would go into effect in March 2025; and
WHEREAS, prior to the implementation of the change, Ava with assistance from the City will conduct extensive outreach to customers explaining the change and providing information regarding options; and
WHEREAS, on June 13, 2024, the ESC recommended that the City Council adopt a resolution choosing Ava’s Renewable 100 service level as the default for all Fremont electric energy accounts, with the exceptions noted in this Resolution.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fremont hereby requests that, effective March 2025, Ava enroll all electric service accounts within Fremont in Renewable 100 as the default electricity product, except for customers participating in income-qualified programs (California Alternate Rates for Energy/CARE and Family Electric Rate Assistance/FERA), customers on Medical Baseline service, customers enrolled in Direct Access Service, customers who have made a service level election with Ava, and customers who have opted out of Ava.
BE IT FURTHER RESOLVED that the Ava Board of Directors has final decision- making authority regarding changes to default service, and while it is not the preferred option, the City Council of the City of Fremont authorizes a phased implementation over two years (2025 and 2026) if that option is selected by the Ava Board of Directors.
BE IT FURTHER RESOLVED that this enrollment in the proposed electric utility rate plan is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to, without limitation: (1) CEQA Guidelines Section 15378(b)(3), (4) &/or (5), as it is a fiscal or administrative activity that will not result in any direct physical impacts to the environment; (2) Section 15273(a)(2), as CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies for the purpose of purchasing or leasing supplies, equipment, or materials, (3) Section 15183, as the project is consistent with the previously-circulated Fremont General Plan
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EIR (SCH#2010082060) and the 2023 EIR Addendum prepared for the Climate Ready Fremont (qualified Climate Action Plan), under which the proposed project was a recommended community-level strategy action item in the plan, and/or (4) Section 15061(b)(3), in that the proposed action would not have the potential to cause a significant effect on the environment, and is not subject to CEQA review. Each of the foregoing provides a separate and independent basis for CEQA exemption.
ADOPTED ______________, 2024, by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________________
Mayor
ATTEST:
__________________________________
City Clerk
APPROVED AS TO FORM:
_________________________________
City Attorney