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Home My WebLink About2012-35 CA CAP-AND-TRADE RESOLUTION 2012-35 A RESOLUTION OF THE CITY OF UKIAH ADOPTING A PROGRAM FOR THE CALIFORNIA CAP-AND-TRADE PROGRAM WHEREAS, in 2006, the State of California adopted into law the California Global Warming Solutions Act of 2006; and WHEREAS, under this law, the State of California has adopted a goal to reduce state-wide emissions of greenhouse gases ("GHG") to estimated levels of the year 1990 by the year 2020; and WHEREAS, the California Air Resources Board ("CARB") has adopted three regulations whose purpose is to achieve the state's GHG reduction goals, including a market-based compliance mechanism commonly referred to as the California Cap-and-Trade Program; and WHEREAS, the City shall register with the CARB under the appropriate registered function and will identify City personnel, as appropriate, such that it will fulfill the first pre-requisite to receive its direct allocation of allowances; and - WHEREAS, the City shall identify the appropriate City personnel, as required, including but not limited to Officer(s), one (1) Primary Account Representative, at least one (1) and not more than four (4) Alternate Account Representative(s), and up to five (5) Account Viewing Agents in order to perform various required tasks of the regulations; and WHEREAS, any City personnel seeking access to the CARB electronic tracking system, currently referred to as the "Compliance Instrument Tracking System Service" (or "CITSS"), shall fulfill the "Know Your Customer" requirements of the regulations; and WHEREAS, through the cap-and-trade regulations, the CARB will host auctions to sell "allowances" which are effectively permits to emit GHGs; and WHEREAS, the CARB will host the first auction on November 14, 2012; and WHEREAS, beginning 2013, and each year thereafter, the CARB will host auctions on the twelfth (12th) business day of the second month of each calendar quarter; and WHEREAS, the City, through its electric utility, participates in the activities that subjects it to a number of new mandates created under this law and its related regulations, including procuring allowances from the CARB auctions; and WHEREAS, the City electric utility is identified as an "Electrical Distribution Utility" under the cap-and-trade regulations and is therefore eligible to receive a direct allocation of allowances at no cost from the CARB; and WHEREAS, the allowances received from CARB under a direct allocation are restricted in their use as are any associated values and market proceeds; and WHEREAS, the cap-and-trade regulations restrict the use of allowances and associated allowance value in such a way that the City shall not use these allowances for its own compliance needs with all of its regulated activities associated with sales into the wholesale electricity markets administered by the California Independent System Operator; and WHEREAS, not later than September 4, 2012, the City's Primary Account Representative, or any Alternate Account Representative whom has proper delegated authority, shall instruct CARB to deposit one-hundred percent (100%) of the City's direct allocation of allowances into the City's Limited Use Holding Account; and WHEREAS, not later than September 14, 2012, the City shall receive its direct allocation of allowances; and is WHEREAS, not later than November 4, 2012, the City's Primary,Account Representative, or any Alternate Account Representative whom has proper delegated authority, shall consign one-third (1/3rd) of the allowances held in the City's Limited Use Holding Account to CARB for the purposes of selling the consigned allowances in the CARB-sponsored Auction; and WHEREAS, not less than seventy-five (75) days prior to a quarterly auction held in 2013 or any year thereafter, the City is required to consign all allowances held in its Limited Use Holding Account to the GARB, or its designee. for sale in quarterly auctions with a calendar year corresponding to the vintage of said allowances and any vintages of prior years; and WHEREAS, at least thirty (30) days prior to the 2012 and quarterly auctions, the City's Primary Account Representative, or any Alternate Account Representative whom has proper delegated authority, shall register to participate in the auction, to the extent that registration is required in order to consign and sell allowances in the auction; and WHEREAS, this program in no way authorizes City personnel from expending any market proceeds associated with the sale of allowances received through a direct allocation from CARB; and NOW, THEREFORE, BE IT RESOLVED that the City of Ukiah does hereby adopt a program for implementation of the California Cap-and-Trade Program as shown on Exhibit A attached, and this Resolution shall be effective upon adoption of this resolution and shall remain in effect until amended or superseded. PASSED AND ADOPTED by the City of Ukiah Council on August 1, 2012, by the following roll call vote: AYES: Councilmembers Rodin, Baldwin, Crane, and Mayor Landis NOES: None ABSTAIN: None ABSENT: Councilmember Thomas .' tom,/' ' +� M Anne La dis, Mayor If.61 imp • - : oWsity Clerk Exhibit A Ukiah's Cap-and-Trade Program 1. The City shall have a program for the implementation of the California Cap-and-Trade Program, which shall include all of the provisions set forth herein and shall be known as the "City's Cap-and-Trade Implementation Program"; 2. The Cap-and-Trade Implementation Program shall be effective upon adoption by the City Council and shall remain in effect until amended or superseded; 3. The Electric Utility Department ("EUD") shall be responsible for the administration of allowances received through a direct allocation from the California Air Resources Board ("CARB"); 4. The City Manager is hereby authorized to serve as the City's Primary Account Representative ("PAR"), and the Electric Utility Director is hereby authorized to serve as the City's Alternate Account Representative (AAR) and both shall perform all duties assigned to that role that are prerequisite or related to the act of consigning allowances to the Executive Officer of CARB, for the purposes of selling said allowances in a CARB-sponsored auction, that are received through a direct allocation; 5. The PAR or AAR is hereby authorized to consign allowances to the Executive Officer of CARB, or its designee, for the purposes of selling said allowances in the CARB-sponsored auctions, as required by the regulations; 6. The PAR or AAR shall instruct CARB, not later than September 1 of each year, or the first business day thereafter, to transfer one-hundred percent (100%) of the allowances received through a direct allocation into the City's Limited Use Holding Account; 7. The PAR or AAR shall consign, not later than November 2, 2012, one- third (1/3rd) of the allowances in the Limited Use Holding Account, rounded up to the nearest whole integer or block size permitted under the regulations, to the Executive Officer of CARB, or its designee, for the purposes of selling said allowances in the auction scheduled for November 14, 2012; 8. Starting in 2013, and each year thereafter, the PAR or AAR shall consign allowances, not less than 75 days prior to a quarterly auction, to the Executive Officer of CARB, or its designee, for the purposes of selling said allowances in each of the quarterly auctions with a calendar year corresponding to the vintage of said allowances and any vintages of prior years; and 9. The PAR or AAR shall identify at least one (1) and up to four(4)Alternate Account Representative(s) ("AAR") and shall have the ability to delegate any roles,responsibilities, and powers established under this program to any of the AARs; Pg. 1 of 2 a. The AARs shall register with the GARB, as required by the regulations; 1 10.The PAR or AAR may identify up to five (5) natural persons to act as Account Viewing Agents ("AVA"); a. Any AVAs shall register with the CARB, as required by the regulations; 11.The Cap-and-Trade Implementation Program does not authorize: a. City personnel to directly procure GHG compliance instruments; b. Any use or expenditure of any market proceeds associated with the consignment or sale of allowances received through a direct allocation from the CARB, without an identified expenditure in the approved EUD budget. Proceeds from allowances will be accounted for by the Finance Department and will maintain an accounting of all proceeds from allowance sales and expenditures through the electric utility budget. i i 1 Pg. 2 of 2 I