NOT YET APPROVED Attachment A
Resolution No. _
Resolution of the Council of the City of Palo Alto Approving Verified Emission Reduction Master Agreements with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC and Authorizing the City Manager to Purchase VERs from AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC under Specified Terms and Conditions During Calendar Years 2025 through 2034, Inclusive
RECITALS
A. On December 5, 2016, the Council adopted Resolution 9649 approving a Carbon Neutral Natural Gas Plan to achieve a carbon neutral gas portfolio by fiscal year 2018 with no greater than a 10 cents per therm rate impact.
B. In accordance with the Carbon Neutral Plan, the City must purchase environmental offsets or verified emission reductions equal to the annual emissions from natural gas use by all City of Palo Alto Natural Gas Utility customers.
C. By Resolution 9703 approved August 21, 2017, Council approved the Standard Form Verified Emissions Reduction Master Agreement (VER Master Agreement); negotiated agreements with specific verified emission reduction suppliers are recommended for Council approval with maximum expenditure limits and transaction terms.
D. On December 7, 2020, the Council adopted Resolution 9930 modifying the Carbon Neutral Gas Plan, limiting the price paid by the City for VERs to $19 per ton CO2e.
E. The City intends to purchase verified emission reductions from one or more prequalified suppliers from delivery during calendar years 2025 through 2034, inclusive, so long as the supplier with whom the City negotiates a specific purchase transaction continues to be qualified and otherwise eligible to transact with the City.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby delegates to the City Manager or their designee the authority to execute the VER Master Agreements with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC.
SECTION 2. The Council hereby authorizes the City Manager or their designee to purchase a portion of the City's verified emission reduction requirements from AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC by negotiating one or more individual transactions, including, but not limited to, contracts, addenda, confirmations, and transactions.
SECTION 3. The purchases negotiated under Section 2 with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC shall not exceed $10 million per counterparty; and all 1 6056914
NOT YET APPROVED Attachment A
transactions are subject to the Palo Alto Municipal Code and the City's Energy Risk Management Policy, Guidelines and Procedures.
SECTION 4. Adoption of this resolution is not subject to California Environmental Quality Act (CEQA) review as it is an administrative governmental activity that will not result in any direct or indirect physical change to the environment (CEQA Guidelines 15378(b)(5)).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Administrative Services
Director of Utilities
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