Agenda Item C.3
DISCUSSION/ACTION ITEM
Meeting Date: May 7, 2024
TO: Mayor and Councilmembers
SUBMITTED BY: Peter Imhof, Planning and Environmental Review Director PREPARED BY: Dana Murray, Sustainability Manager
Angeline Foshay, Management Analyst
SUBJECT: Consideration of Opting Up the City’s Municipal Utility Accounts to 100% Renewable Electricity with Central Coast Community Energy (3CE) RECOMMENDATION:
Adopt Resolution No. 24-__, entitled “A Resolution of the City Council of the City of Goleta Authorizing the City Manager to Opt Up All Municipal Utility Accounts to the 100 Percent Renewable Electricity Tier Through Central Coast Community Energy (3CE).” BACKGROUND:
Cities are on the front lines when it comes to combating climate change. Cities are also leading the world in reducing carbon emissions through aggressive policies and adoption of clean technologies. The City of Goleta has a strong history of taking climate action and moving towards sustainability, and how much renewable energy is in our municipal electricity has a direct correlation with lowering Green House Gas (GHG) emissions. The City's efforts have kept us on track with state requirements for renewable energy (Senate Bill (SB) 100) and waste diversion (A ssembly Bill (AB) 341). California's AB 32 (the California Global Warming Solutions Act of 2006) sets the State's goal for a more sustainable future.
The 14th annual California Green Innovation Index released in December 2022 finds that California will face significant challenges in meeting its 2030 climate targets.
Advancements in state policy continue to push renewable energy targets further, with the goal of reaching 100% zero carbon, renewable electricity by 2045 (SB 100, 2018).
Despite this ambitious target -setting for renewable generation, the percentage of tot al power mix (in-state generation plus imports) from renewable sources rose just 0.5 percent to 33.6 percent in 2021, and in -state generation of renewables actually declined. In August 2022, the California Legislature additionally passed SB 1020, setting i nterim targets of 90 percent clean electricity by 2035 and 95 percent by 2040. At the current pace of growth, California is at risk of missing the 50 percent Renewable Portfolio Standards (RPS) goal by 2026.
1 Meeting Date: May 7, 2024
More than ever, it is essential that local governments partner with utilities to advance renewable energy generation to reduce statewide and community emissions.
Encouraging renewable energy generation and its use through installation of solar panels, battery energy storage, electric vehicle (EV) c harging stations and similar measures at City-owned facilities is identified in the City’s Strategic Plan and Resolution 17-52, which adopted the City’s 100% Renewable Energy Goal for the City by 2030. This resolution also includes an interim goal for at l east 50% of electricity use by municipal facilities to come from renewable sources by 2025. The acquisition of the City Hall building allowed the City to implement a high-visibility clean energy project to support the City’s goal with the installation of the Monarch 1 solar carport at City Hall.
With the Monarch 1 fully installed and online since August 2022, the installation has been generating and providing renewable electricity to City Hall for over a year . Council’s Energy & Green Issues Standing Committee (Green Committee) requested an update on the performance of the Monarch 1 project to track its generation and impact on municipal facility emissions , which w as provided to the Green Committee and City Council in January 2024. A summary of the per formance and impacts of the system can be found below, and the full report prepared by the City’s consultant for the project, Optony, is attached to this report (Attachment 2). Green Committee members also requested an update on the City’s transition to 100% renewable energy, which is provided below.
Monarch Solar Array Performance
In December 2020, City Council authorized a letter of intent to proceed with an agreement for a solar photovoltaic (PV) project on its recently acquired City Hall building, consistent with the adopted Strategic Energy Plan and 100% Renewable Energy Goal. On October 19, 2021, City Council approved the agreements to proceed with the solar PV project. On August 25, 2022, installation of the solar PV system, Monarch Solar Array, was completed at City Hall. It was expected to produce approximately 313,721 kilowatt -hours (kWh) of electricity in the first year of production. Staff worked with Optony to review the performance from the first year. Below are the highlights:
In Year 1 of operation, the solar PV system generated 303,132 kWH. Monarch produced 96.6% of expected kWH, with room for improvement from system configuration changes by the solar developer, Symbiont. Those configuration changes are in process now.
Roughly 84% of City Hall electricity usage was supplied by the PV system in Year 1 of operation.
Compared to generation costs from 3CE and/or SCE, the City has saved roughly $6,000. It was originally expected that Year 1 might lead to increased bills, but SCE rates rose more than expected.
About 75.7 metric tons of CO2 emissions have been avoided (equivalent to carbon sequestered by 90 acres of U.S. Forest in one year or removing 17 gas vehicles from the road for one year.)
Transition to 100% Renewable Energy
2 Meeting Date: May 7, 2024
With the adoption of Resolution 17 -52, the City set itself on an ambitious path to 100% renewable electricity. Backed by recommendations from both the City’s Climate Action Plan (2014) and Strategic Energy Plan (2019), the most impactful and quickest way for the City to decarbonize its energy was to join a Community Choice Energy (CCE) program. After years of analysis, publ ic outreach, and collaboration with neighboring jurisdictions on evaluating CCE programs, on August 20, 2019, the Goleta City Council voted to join Central Coast Community Energy (3CE; formerly Monterey Bay Community Power), a CCE provider operating along the Central Coast.
Mirroring the City’s Resolution 17 -52, 3CE has also committed to advancing its clean energy procurement to 100% renewable electricity by 2030, ensuring that the City would meet its ultimate goal by its intended deadline by remaining a customer.3CE’s commitment to transition all customers to 100% renewable electricity outpaces that of the City’s alternative electricity provider, Southern California Edison, and the state’s required renewable portfolio standards.
Source: Central Coast Community Energy
At this time, 3CE’s base electricity option , 3C Choice, is comparable to that of SCE and can be evaluated by looking at their Power Content Label1. All utilities release their official Power Content Label s for the previous year in late summer, and 3CE’s 2023 Power Content Label is expected to be on track to meet state and 3CE goals for renewable energy. 3CE’s 2022 power content label for 3C Choice, the base program option, was
35.8% renewable (mix of solar, wind, geothermal, etc .), 5.9% large hydroelectric, and
58.3% unspecified energy. In 2022, due to the high percentage of unspecified power in 3CE’s Power Content Label, the GHG emissions intensity of 3CE Choice program was higher than the 2022 California utility average. The utility ave rage GHG impacts have been reducing with the proliferation of renewable resources and the emergence of community choice energy programs sourcing more renewable electricity . Despite t he
1 3CE Power Content Labels: https://3cenergy.org/about-us/understanding-clean-energy/ 3 Meeting Date: May 7, 2024
emissions intensity for 3CE’s 2022 3C Choice, 3CE remains the City’s best and quickest option for meeting its GHG emissions reductions and Resolution 17-52 goals.
For the premium 100% renewable electricity option, 3CPrime, 50% of the electricity comes from solar and 50% comes from contracted wind sources. Opting up to 100% encourages the continued development of renewable energy in California by 3CE , including local generation in Santa Barbara County and along the central coast . 3CE’s ultimate goal is to have 100% renewable energy supplied by 3CE to all customers by 2030.
Source: Central Coast Community Energy
During the January 2024 Energy & Green Issues Standing Committee, committee members supported the staff recommendation to bring this item to City Coun cil and for the City to opt up to 100% renewable electricity via 3C Prime.
DISCUSSION:
In advance of 2030, cities in 3CE and other community choice energy programs have the opportunity to “opt up” to 100% renewable energy at any time. 3CE offers this program through “3C Prime.” Jurisdictions like Goleta have the option to purchase up to 100% renewable, clean electricity - procured from non-polluting, clean and renewable sources with an approximate 50/50 split using solar and wind. Unlike fossil fuels, such as oil, natural gas, and coal, which cannot be replaced and produce GHG emissions, renewable energy regenerates naturally in a short period of time.
3CE’s 3C Prime is procured from non-polluting, clean, traceable, and renewable sources, such as solar and wind. The exact proportion of each source varies with time, based on 4 Meeting Date: May 7, 2024
demand and availability. Each year, 3CE procures an amount of renewable energy sufficient to meet the sum of the individual choices of all its customers. As a 3CE customer, the City’s energy choices (default or 3C Prime) directly impact the overall amount of renewable power 3CE is buying. Selecting 3C Prime at 100% clean power means that 3CE will procure additional, incremental renewable power to meet that demand. 3CE pr ocures 100% clean and renewable energy for 3C Prime customers separately from the energy that is procured for 3C Choice customers, meaning that 3C Prime cities/customers do not make the 3C Choice energy mix dirtier by increasing Prime load.
Of the jurisdictions that make up 3CE’s service territory from Carpinteria to Santa Cruz, only the Cities of Watsonville and Monterey have opted up to 100% clean electricity for municipal facilities via 3C Prime. The City of Santa Barbara also procures 100% carbon- free electricity (renewable, large hydroelectric) for all municipal accounts and community customers via its citywide CCE program, Santa Barbara Clean Energy. Electing to opt up to 100% renewable energy is additionally common practice with Clean Power Alliance customers just south of Santa Barbara County, such as the City of Ojai, County and City of Ventura, City of Oxnard, City of Camarillo, and many more jurisdictions in Los Angeles County and the Inland Empire. Switching to 100% renewable energy would allow the City of Goleta to join the growing number of jurisdictions significantly reducing their electricity emissions in California and position the City as a leader within 3CE territory by switching all municipal accounts to 3C Prime, meeting and surpassing our interim goals detailed in Resolution 17-52.
GHG Reductions
Selecting 3C Prime energy would enable Goleta to join other regional jurisdictions in meeting the California's SB 100 mandate early, to power 100% of the state's electricity consumption with zero-carbon, clean renewable energy electricity by 2045.
From September 2022 – August 2023, City municipal electricity usage for all facilities and city-owned streetlights totaled 1,163,101 kilowatt-hours (kWh), which, when incorporating the percentage of renewables provided by 3CE’s 3C Choice program, equates to approximately 245.6 metric tons of CO2 emitted. Moving the City’s municipal electricity accounts to 3C Prime and 100% clean, renewable energy would effectively reduce those carbon emissions to zero, reducing the City’s total municipal GHG emissions by approximately 20%. This choice would have the added benefit of counting toward our current and future State -required emissions reductions while also leading by example within 3CE territory and along the Central Coast.
GOLETA STRATEGIC PLAN:
City-Wide Strategy: 1. Support Environmental Vitality
Strategic Goal:
1.1 Promote renewable energy, energy conservation and local energy resiliency 5 Meeting Date: May 7, 2024
o 1.1.1. Implement the Strategic Energy Plan in furtherance of the City's adopted 100% renewable energy goals
1.3. Strategic Goal: Adopt best practices in sustainability o 1.3.8. Participate in Central Coast Community Energy (3CE) FISCAL IMPACTS:
Based on an analysis by 3CE, the City of Goleta’s municipal electricity accounts consumed 1,163,101 kWh f rom September 2022 – August 2023 (first year of solar generation). Based on that annual electricity load and 3CE’s 3C Prime premium of .008 cents per kWh, switching to 3C Prime would cause the City of Goleta’s electricity costs to increase by approximately $9,305 per year. Staff requests $10,000 annually be allocated to account for this premium. Should the City Council approve this resolution, the FY 24/25 mid-cycle budget utility accounts will be adjusted accordingly. Staff anticipates the 3C Prime rate change to go into effect July 1, 2024.
ALTERNATIVES:
City Council may elect to not opt up to 100% renewable electricity with 3CE and maintain its current energy mix.
LEGAL REVIEW BY: Megan Garibaldi, City Attorney
APPROVED BY: Robert Nisbet, City Manager
ATTACHMENTS:
1. Resolution No. 24-__, entitled “A Resolution of the City of Goleta Authorizing the City Manager to Opt Up All Municipal Utility Accounts to the 100 Percent Renewable Electricity Tier Through Central Coast Community Energy (3CE).”
2. Monarch 1 Solar Performance Report – Prepared by Optony
3. Staff “Transition to 100% Renewable Energy” PowerPoint Presentation 6 ATTACHMENT 1
A RESOLUTION OF THE CITY OF GOLETA AUTHORIZING THE CITY MANAGER TO OPT UP ALL MUNICIPAL UTILITY ACCOUNTS TO THE 100 PERCENT
RENEWABLE ELECTRICITY TIER THROUGH CENTRAL COAST COMMUNITY ENERGY (3CE)
7 RESOLUTION NO. 24-__
A RESOLUTION OF THE CITY OF GOLETA AUTHORIZING THE
CITY MANAGER TO OPT UP ALL MUNICIPAL UTILITY
ACCOUNTS TO THE 100 PERCENT RENEWABLE ELECTRICITY
TIER THROUGH CENTRAL COAST COMMUNITY ENERGY (3CE)
WHEREAS, in 2002 the California State Legislature passed, and the Governor signed into law, Assembly Bill 117, which enables cities and counties to become electric service providers through Community Choice Aggregation (CCA); and WHEREAS, Central Coast Community Energy (“3CE”) was formed on June 27, 2017 under the provisions of the Joint Exercise Powers Act of the State of California; and WHEREAS, 3CE offers t wo rate options: 3C Choice offers 3 5.8% renewable content (2022 Power Content) and 3C Prime which provides 100% renewable content ; and
WHEREAS, 3CE offers a clear path to a clean energy future, which contributes to improved air quality, and addresses climate change through reduced greenhouse gas emissions, by offering clean renewable energy options; and WHEREAS, the City of Goleta is a member agency of 3CE; and WHEREAS, the City of Watsonville and City of Monterey selected 100% renewable energy (“3C Prime”) as the default rate for municipal facilities, thereby reaching State-mandated renewable energy goals years in advance; and WHEREAS, climate change poses a significant threat to California’s forestry, fisheries, water supplies and coastal resources, with impacts that are likely to include winter flooding, summer droughts, loss of shoreline, forest fires, diminished fish and wildlife hab itat, decreased snowpack, and increased disease vectors and invasive species; and
WHEREAS, local governments, as part of their commitment to protecting the environment and building resiliency, while also meeting state mandated goals, can champion the way to a greener future by opting-up their municipal facilities to 100 percent renewable energy to curb emissions of greenhouse gases ahead of the state- mandated deadline; and
WHEREAS, opting up city municipal facilities to 3C Prime will reduce the City’s overall greenhouse gas emissions and better position the City to achieve its climate action goals, and
WHEREAS, a commitment to 100% renewable will lead to investments in projects, such as wind power, battery storage, and solar , to reduce carbon emissions while also having the added benefit of creating local jobs; and
8 WHEREAS, a commitment to 100% renewable energy is a commitment to clean, healthy, and thriving communities; and
WHEREAS, 3CE will reinvest back into the community through the development of more local renewable energy sources, and support for local energy programs; and WHEREAS, achieving climate goals will require action at all levels , including individual, community, local and state government, businesses and utilities , in order to protect the health and welfare of the community, while meeting state and federal efforts ; and
WHEREAS, choosing to opt up to 3C Prime demonstrates leadership in the area of environmental sustainability, stewardship and also encourages other jurisdictions to follow suit.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GOLETA AS FOLLOWS:
SECTION 1. T he City Manager shall authorize all city municipal facilit y utility accounts to opt up to 3C Prime, the 100% renewable energy option with 3CE.
SECTION 2. Th e City Clerk shall certify to the adoption of this Resolution and enter it into the original book of resolutions.
PASSED, APPROVED AND ADOPTED this 7th day of May, 2024.
__________________________
PAULA PEROTTE
MAYOR
ATTEST: APPROVED AS TO FORM:
__________________________ __________________________
DEBORAH LOPEZ MEGAN GARIBALDI
CITY CLERK CITY ATTORNEY
9 STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.
CITY OF GOLETA )
I, DEBORAH LOPEZ, City Clerk of the City of Goleta, California, DO HEREBY CERTIFY that the foregoing Resolution No. 24-___ was duly adopted by the City Council of the City of Goleta at a regular meeting held on the 7 th day of May, 2024, by the following
vote of the Council:
AYES:
NOES:
ABSENT:
(SEAL)
_________________________
DEBORAH LOPEZ
CITY CLERK
10 ATTACHMENT 2
MONARCH 1 SOLAR PERFORMANCE REPORT – PREPARED BY OPTONY
11 California | Colorado | New York PAGE | 1
TO: Matthew Fore, City of Goleta
FROM: Jonathan Whelan and Amanda Craparotta, Optony Inc.
DATE: November 17, 2023
RE: City of Goleta City Hall Solar PV System Year 1 Summary
CITY OF GOLETA CITY HALL SOLAR PV SYSTEM YEAR 1 SUMMARY Solar PV System Background and Expectations
On August 25, 2022, a 180 kW-AC / 208.3 kW-DC solar photovoltaic (PV) system was installed at Goleta City Hall, located at 130 Cremona Dr ive in Goleta, CA, under a Power Purhase Agreement between the City of Goleta and solar developer/financier Symbiont. This solar system i s constructed on steel shade structures in the City Hall parking lot and is expected to produce approximately 313,721 k ilowatt-hours (kWh) of electricity in the first Year of production, with an expected 0.5% degradation rate for subsequent years, and was sized to offset approximately 99% of the historic (pre-2019) energy consumption at City Hall. This calculation of historic consumption was perf ormed shortly after the City had procured the upstairs suite of offices at City Hall, so electrical usage from the full current space was not available or included in the offset calculations.
Solar PV System Operation and Production
According to the solar monitoring software platform (AlsoEnergy PowerTrack), the solar system produced 303,132 kWh in the first -year of operation , which means the system produced energy at 96.6% of expectations. A review of system performance by Optony indicates th at there may be alternatives to improve solar perfo rmance in coming years, leading to optimism that the s olar syst em may actually produce over 100% of its expected energy in upcoming years. Symbiont (through its service provider) has committed to investigating the opportunity to make system configuration changes to enable the improved performance, at no cost to the City.
12 California | Colorado | New York PAGE | 2
With the increased City operational usage of the second floor of City Hall, the energy usage of the site has also increased, and the solar was not able to offset close to 100% of energy usage. The measured Year 1 solar production of 303,132 kWh was able to offset approximately 84% of the 359,741 kWh that was used at City Hall. Again, with proposed improvements to the solar system configuration, the offset percentage may be able to be increased.
In Year 1 of the PPA, the City paid Symbiont approximately $45,000 for the purchase of the 303,132 kWh generated by the solar system. Under a Net Energy Metering Aggregation (NEMA) interconnection with the electric utility, the approximate value of the solar production was roughly $51,000, leading to modest, but real, bill savings.
Avoided Carbon Emissions
By utilizing the eGRID California subregion CO 2 output emission rate of 531.7 lb/MWh 1, Optony has calculated that the City has avoided emitting approximately 166,805 lbs., or 75.7 metric tons, of CO2 by negating the delivery of 303,132 kWh from the grid by supplying that consumption with on-site renewable energy. According to the US Environmental Protection Agency (EPA) emissions calculator2, this CO2 offset is equivalent to removing 17 gas vehicles from the road, or equivalent to recycling 26 tons of waste rather than landfilling, or equivalent to the carbon sequestration of 90 acres of American forests for one year.
Optony has been proud to support the City of Goleta in taking real, impactful , actions to reduce air pollution and mitigate the impacts of emissions-caused climate change.
Any questions can be directed to Jonathan Whelan ([email protected]) and Amanda Craparotta ([email protected]).
1 https://www.epa.gov/system/files/documents/2023-01/eGRID2021_summary_tables.pdf 2 https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator 13 STAFF PRESENTATION
14 Transition to 100%
Renewable Energy
May 7, 2024
Presentation by:
Dana Murray, Sustainability Manager
Angeline Foshay, Sustainability Analyst
15 Purpose
Update:
Monarch 1 performance
Progress on 100% renewable electricity goal
Recommendation:
Consider accelerating the City’s electricity mix by "opting up" to
100% renewable energy for all municipal electric utility accounts
May 7, 2024 City Council Meeting 2
16 Background
Cities are on the front lines of adapting to and combating climat
e change
City of Goleta Climate Action
Renewable energy content has a direct correlation with lowering our City
’s greenhouse gas (GHG) emissions
Cities partner with utilities to advance renewable energy & reduce s
tatewide and community GHG emissions
3 May 7, 2024 City Council Meeting
17 Background
Resolution 17-52 (2017):
100% renewable electricity community-wide by 2030
Interim goal of 50% renewable electricity at municipal facilities
by 2025
City’s Strategic Plan (2019):
Encourage renewable energy generation and
renew
able energy use at municipal facilities
City joins Central Coast Community Energy (3CE)
(2019)
Monarch 1 Solar Photovoltaic system operational
at City Hall (2022)
4 May 7, 2024 City Council Meeting
18 Monarch 1 Solar Array
Monarch 1 online since August 25, 2022
Electricity Generation:
Solar PV system generated 303,132 kWH
Produced 96.6% of expected kWH
84% of City Hall electricity usage supplied by Monarch Solar Array Fiscal Impact:
Compared to generation costs from utilities, the City has saved $6,000 GHG Emissions Reduced:
75.7 metric tons of CO2 emissions have been avoided per year Equivalent to carbon sequestered by 90 acres of U.S. Forest in one year 5 May 7, 2024 City Council Meeting
19 Transition to 100% Renewable Energy
City Joins a Community Choice Energy program
August 2019
3CE Goal to provide 100% renewable electricity to
all customer
s by 2030
Mirrors the City’s Resolution 17-52
Annual Power Content Labels from 3CE
(9/2023 for 2022 energy)
6 May 7, 2024 City Council Meeting
20 7
May 7, 2024 City Council Meeting
21 3CE Power Content
Power Content
Unspecified Power -
electricity that
has been
purchased through open
market transactions and is
not traceable to a specific
generation source
2023 Power Content Label to
be released
this summer
3CE is on track to meet state
and 3CE goals
for renewable
energy procurement
8 May 7, 2024 City Council Meeting
22 3C Prime: 100% Renewable Energy
"All Central Coast Community Energy
customer
s help make California’s grid
cleaner and more reliable by supporting
the growth of renewable energy."
3C Prime power content - 100%
renew
able energy from wind and solar
Cost premium an added cost of
$0.008c/kilowa
tt hour
All customers (including cities) have
option to "op
t-up" to 100% Renewable
Energy with 3Cprime Service
9 May 7, 2024 City Council Meeting
23 3C Prime: 100% Renewable Energy
As a 3CE customer, the City’s energy
choices (def
ault or 3C Prime) directly
impact the overall amount of renewable
power 3CE is buying
Selecting 3C Prime --> 3CE will procure
additional renew
able energy to meet that
demand
3CE sources 3C Prime and 3C Choice
customer
energy separately
10 May 7, 2024 City Council Meeting
24 100% Renewable Energy Cities Leading
3CE:
Watsonville and Monterey opted up for municipal
facilities
Santa Barbara Clean Energy:
Santa Barbara procures 100% carbon-free electricity
for all municipal
accounts and community
customers
Clean Power Alliance (CPA):
21/32 cities (and community customers) in CPA are
running on 100% Green
Power
Includes City of Ojai, County and City of Ventura,
City of Oxnard,
City of Camarillo, etc.
11 May 7, 2024 City Council Meeting
25 Environmental Impact: Reduce GHG Emissions
2022: Municipal electricity usage for all facilities including streetlights totaled 1,266,829 kilowa
tt-hours (kWh)
Approximately 242.4 metric tons of CO2 emitted in 2022 based on power content Switching to 3C Prime would drop electricity-related carbon emissions to zero, reducing total
municipal GHG emissions by ~20%
Goleta could meet State and local GHG reduction goals early for City operations Meet SB 100 mandate for municipal operations to power 100% of the st
ate's electricity consumption with zero-carbon renewable energy electricity by 2045 Leading by example within 3CE territory and along the Central Coast 12 May 7, 2024 City Council Meeting
26 Fiscal Impact: Electricity Bill Increase ~$10K
Sept 2022 – Aug 2023 electricity data:
1,163,101 kWh used
3C Prime premium of .008 cents per kWh
City electricity bills would increase by ~$9,305 annually Staff requesting $10,000 annual allocation to utility accounts t
o adjust for premium
Savings from Monarch 1 can assist in offsetting
premium
13May 7, 2024 City Council Meeting
27 Staff Recommendation
Adopt Resolution No. 24-__, entitled “A Resolution of the City of Goleta Authorizing the City Manag
er to Opt Up All Municipal
Facilities to the 100 Percent Renewable Energy Tier Through Central Coast Community Energy (3CE)”
14May 7, 2024 City Council Meeting
28