City Council Agenda Report
Meeting Date: March 4, 2025
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Senior Management Analyst
Subject
Renewable Portfolio Standard Procurement Plan and Enforcement Program Recommendation
A. Approve and adopt the updated Renewable Portfolio Standard (RPS) Procurement Plan and Enforcement Program; and
B. Repeal Resolution No. 2012-02.
Background
Vernon Public Utilities (VPU) is tasked with implementing and enforcing the Renewable Portfolio Standard (RPS), a regulatory mandate aimed at increasing energy production from renewable sources. This initiative aligns with the Legislature's intention to promote the use of renewable resources while considering the impacts on rates, reliability, financial resources, and environmental improvement.
On April 12, 2011, Governor Brown signed the California Renewable Energy Resources Act (Senate Bill 2 of the First Extraordinary Session, also known as SBX1 2) into law. This legislation required all load-serving entities in California to achieve a 33% Renewable Portfolio Standard by 2020, with interim targets of 20% on average for 2011-2013, 25% by 2016, and 33% by 2020.
Furthermore, SBX1 2 mandates that Publicly Owned Utilities (POUs) develop a procurement plan and establish an enforcement program.
In 2015, Senate Bill 350 (SB 350) introduced specific greenhouse gas (GHG) emissions reduction targets, aiming for a 40% decrease from 1990 levels by 2030 and an 80% reduction by 2050. SB 350 also raised RPS compliance requirements to 50% by 2030, with interim targets of 40% by 2024 and 45% by 2027. Starting with Compliance Period 4, January 1, 2021 to December 31, 2024, the California Energy Commission (CEC) implemented a new requirement for POUs, stipulating that at least 65% of renewable procurement must come from contracts lasting ten years or more.
In 2018, Senate Bill 100 (SB 100) accelerated the RPS targets established by SB 350. It ensures that at least 60% of California's electricity comes from renewable sources by 2030 and that this 60% renewable generation level must be maintained at or above that threshold from 2030 onward. SB 100 also mandates that renewable energy and zero-carbon resources will provide 100% of the retail electricity sold in California by 2045.
In 2022, Senate Bill 1020 (SB 1020) further revised state energy policy by requiring eligible renewable and zero-carbon resources supply:
- 90% of all retail electricity sales to California end-use customers by December 31, 2035, - 95% by December 31, 2040, and
- 100% by December 31, 2045.
The City of Vernon has been actively working to meet legislative requirements regarding renewable resources. On January 3, 2012, the City Council adopted Resolution No. 2012-02, which established a Renewable Resources Procurement Plan and Enforcement Program in compliance with SBX1 2. The 2012 plan addressed Compliance Periods 1, 2, and 3, all of which Vernon successfully completed.
On October 17, 2023, the City Council adopted the 2023 Integrated Resource Plan (IRP). The IRP is a 20-year strategy for delivering reliable and cost-effective electricity. The plan ensures compliance with regulatory requirements, focuses on clean energy generation, and addresses distribution system infrastructure and constraints, as updated by SB 350 and SB 100.
VPU has procured eligible renewable resources to achieve the mandated 40% RPS target for 2024, as required by SB 350. The City has secured enough renewable resources to meet its compliance targets for Period 4. Additionally, the City is pursuing more renewable energy contracts for the period from 2025 to 2030 to comply with the goals set forth in SB 100. Staff is confident that they will secure sufficient renewable resources to meet all future targets.
The updated RPS Procurement Plan and Enforcement Program outlines VPU’s renewable resource activities from the past year and includes planned and potential procurement activities for the future to ensure compliance with the RPS Program.
Staff recommends adopting the updated RPS Procurement Plan and Enforcement Program to align with California State law renewable mandates and repealing Resolution No. 2012-02.
The proposed RPS Procurement Plan and Enforcement Program has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
There is no fiscal impact by adopting the RPS Procurement Plan and Enforcement Program.
Sufficient funds to implement the RPS Procurement Plan and Enforcement Program are budgeted in the FY 2024-2025 Electric Fund, Resource Management Division and will be budgeted in subsequent years.
Attachments
1. Renewable Portfolio Standard Procurement Plan and Enforcement Program