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HomeMy WebLinkAbout _ 4.5(a)--Approval to exercise Renewables Portfolio Standard Optional Compliance Measure 3.2(C) � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: May 20,2025 FROM: Nick Zettel, Director of ITEIVI NO. 4.5(a) Redding Electric I7tility ***APPROVED BY*** � ��. ; � _ � v �� ��„ ���� �1c ct c, yrectc� �ii' e in� tri�ttt32ity �.7z?t��:� �_ �p�tt�,C�i ��t t�° ^��'13,{'2{}?. nzettel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.5(a)--Approval to exercise Renewables Portfolio Standard Optional Compliance 1Vleasure 3.2(C) Recommendation Authorize staff to exereise Optional Compliance Measure Section 3.2(C) within the Redding Electric Utility RPS-100 Renewables Portfolio Standard (RPS) Enforcement Program and Proeurement Plan for Complianee Period 4 in order to meet California's RPS Mandate set by the California Energy Commission. Fiscal Impact Exercising the Cost Limitation for Expenditures Optional Compliance Measure (OCM) for Compliance Period 4 results in $9.3M in complianee savings. Alternatzve Action The City Council (Council) may chaase not to exercise the Cost Limitation for Expenditures OCM in the Redding Electric Utility (REU) Renewable Portfolio Standard (RPS) Procurement and Enforcement Program for Compliance Period 4 (CP4) and provide alternative direction to staff. Background/Analysis REU is required to proeure 60 percent of its retail electricity sales from eligible renewable energy resources by 2030 under California's RPS. To comply, REU must meet interim targets and follow strict procurement rules set by the California Energy Commission (CEC). REU staff regularly evaluates the renewable energy credits (RECs) for compliance with the CEC's RPS requirements. REU forecasts the number of RECs reQuired to meet the compliance targets and develops long-term plans to satisfy those obligations, which can include using banked Excess Procurement RECs, executing long-term renewable energy procurements, as well as negotiating long- and short-term REC purchases. CP4 covers a four-year span, running from 2021 to 2024. Report to Redding City Council May 13,Z025 Re: 4S(a)--Approval to exercise Renewables Portfolio Standard Optional Compliance Measure 3.2(C) Page 2 In 2022, the CEC notified REU that during the Compliance Period 3 (CP3) verification process, over 121,000 RECs were deemed ineligible due to an administrative error in the reporting too1. REU staff worked with CEC staff to appeal the decision and reinstate the ineligible RECs. However, CEC staff is not permitted to move RECs once they are retired in the software system, thus ultimately, CEC staff determined the RECs would remain ineligible. Several other publicly- owned electric utilities encountered the same administrative error, causing the CEC to subsequently update the reporting software to avoid future mishaps. As a result, REU staff utilized RECs earmarked for CP4 compliance and applied them to CP3, avoiding a shortfall in that Compliance Period. On March 21, 2023, the Council approved REU's updated RPS Procurement Program and Enforcement Plan. This change aimed to clarify how REU may use OCMs if"factors beyond reasonable control interfere with its ability to meet the procurement requirements outlined in § 3206 of the RPS regulations." In particular, REU� updated the Cost Limitation provision by adding the following application scenarios: • As written in REU's RPS Procurement Program and Enforcement Plan, any changes not attributed to a load forecast deviation; or • Any increase in cost that exceeds the budgeted amount can lead to the use of an OCM. Compliance Pe�iod 4 Activities to �neet RPS Obligations The CEC's determination on the ineligible RECs, along with additional impacts beyond REU's control, have affected REU's ability to meet the compliance taxget far CP4. Other contributing factors include: • Load Forecast: The 20241oad forecast for CP4 (2021-2024) is 5.9 percent higher than the 2021 forecast for the same period. This results in nearly 90,000 additional RECs (an 8.3 percent increase) required to meet the RPS target for CP4; and • Unit 9: Maintenanee at the Whiskeytown hydro generation facility forced the unit offline during the latter part of 2024, resulting in a loss of roughly 5,500 forecasted RECs. As a result, REU staff have taken additional steps to mitigate the shortfall: • REC Purchase: In 2021, before CP4 began, staff assessed the load forecast and available resources, identifying a projected shortfall. To address this, the team arranged the purchase of 100,000 RECs from Shell Energy North America. This Index transaction was finalized in 2021 at$15.00 per REC; • CP4 REC Request for Offer: To verify that the cost of replacement RECs exceeded the forecasted costs adopted in REU's power supply budget, staff issued a formal solicitation for 175,000 vintage 2024 Portfolio Content Category 1 and Portfolio Content Category 3 RECs in December 2024. Of the three responses, none were sufficient to satisfy the entirety of the CP4 shortfall. Report to Redding City Council May 13,Z025 Re: 4S(a)--Approval to exercise Renewables Portfolio Standard Optional Compliance Measure 3.2(C) Page 3 Despite these actions, REU is sti11 six percent short of ineeting CP4 compliance obligations without intervention. REU currently has over 30,000 Excess Procurement RECs banked for future compliance. While REU intended to use them for CP4, the banked amount will not satisfy the deficiency. In October 2024, REU staff inet with the CEC's RPS Verification and Compliance staff to discuss whether REU could retain its banked RECs without penalty. In parallel, staff sought ]egal review from internal and external experts to determine whether this was a legally available option. Next Stetas Based on the analysis, discussion with the CEC, and ]egal review, REU staff recommends the following actions to meet RPS Compliance: 1. Exercise Cost Limitation Optional Compliance Measure Based on the qualifying criteria for available Optional Compliance Measures, staff recommends exercising the Cost Limitations for Expenditure clause in the RPS Procurement Plan and Enforcement Program 3.2.C(2), ref§ 3206 (a)(3) of the RPS POU regulations. 2. Retain Excess Procurement Banked RECs Staff recommends retaining the roughly 30,000 banked excess procurement RECs for use in a future compliance period. The CEC and legal counsel found that carrying forward excess procurement RECs would have no negative impact on REU's compliance with the RPS regulations. Based on the CEC's guidance and legal affirmation, REU staff recommends retaining the current bank of RECs to meet the RPS target in a future compliance period. If the Council approves, REU staff will submit the request to utilize a Cost Limitation OCM in the CEC's Annual RPS Report, due July 1, 2025. Envi�^onmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Prio�ity/City Manager� Goals This agenda item is a routine operational item. Attachments 4.5(a)--Redding RPS Procurement Plan and Enforcement Program GI �" Y � F � � � ° � � � " � � CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: March 21, 2023 FROM: Nick Zettel, Director of �ITEM NO. 4.5(a) Redding Electiric Utility ***APPROVED BY*** . � .�} } t�i }� f . ...� x�* ... � ��li�!fi { �� } $�.� .. ,...�� �" „ ,SiY,;So,istit„�L� „l, ��,.., . �. . "``��www+..w �k et e, �rcctor �a9'$f� � tric L1tri�tv 'ar, 'i 31712t1�3 �ry` iApin,Ci �na ���' 3/�412423 .' f} i{ �l t }}t : ,. }t3P� t��r1. � ti17 5� nzettel@cityofret,��C`;i�:org �`Y`t,,; btippin@cityofredding.org SUBJECT: ,��`�(a)--Redding RPS P�'°��urement Plan and Enforcement Program s �,x � ,; � t�"t.0 t�:;z: } r ' ��r � ��� ,��� �•� � r { js �?I> Rt� Recommendatioi�'' ' � �' '`�� t's�'' ��i#��' t��?r �t�a i t{t � ��' {�'�ts�s � t t 1��. i y,.,��i �;�IJJ1Stist � tif� i 4� � �,fh�I,,,S��t3 1:' i 7 t . . � st'�'rr „<�t � �sF1��} � Approve Version 6 of the Redd��,;�`lectric Utlll;,��� Renewables Portfolio Standard Procurement Plan and Enforcement Prograr�f�,Jx�� �PS Plan) prc����ure RPS-001, updating language to �Section 3�.2(C), �Cost L�imitations fo�E.���`�ditu�es; to ���;`'�`ide ad��d assurance� of rate predictability�and �stability for�Redding Electric Ut�'���custom�`'�'�> � '}{�� `' 4 }1S;� .� `�$� �?,�3���}�i�itr4�f f i`7�3�j.. tt{',.�t t�t rf� Jjt��i�� �t���t��tt;i�t t 4 yt�>.;>`� i� Fiscal Impacr� t � k}ii��ftn t' r �t����x';� �4�� , t z �t x ti;�� No immediat� �iscal impact is ��ssociat��rf�j���� ad�pt�ng �`�;�attac�d revised Renewables� Portfolio Standard Procurement Plan ���,`,`�'�n��'cement �'�����m (��� Plan). However the� updated language to Sectiori 3.2(C); Cr���','�imitat���'����t����`�'�ditur�;�`���rovides added assurance� 9'f i i J yYl}A I }yt� �of rate predictability and stability for Rec�ding Electrf�������ity(REU����j��'stomers � 1 i�j47 1 � {c AZter�nativeAction� ��,�}� �t ;�,r�,�``�`'�'�� �,l �f�i��}� ft���2t'9���fj`�r}{ t�„�„ The City Council (Council) could suggest additional ]t;' ��,�'��{��,���'��o the attached revised RPS Plan and�reguest staff to return the�modi�ied version to'����2'��or consideration at alater date. Background/Analysis Senate Bill 100 required California electric utilities to acquire 60 percent of their annual energy needs� from renewable resources by 2030�. Furthermore; Senate Bill �100� included a policq� �statement that�eligible� renewable �energy resources� and zero-carbon resources should �comprise�� 100 percent of�retail sales ofelectricity�to�California end-use customers by TDecember 3�1, 2045�. Report to Redding City Council March 16,2023 Re: 4.5(a)--Redding RPSProcurement Plan and Enforcement Program Page 2 Since passage of earlier legislation requiring procurement of renewable energy, the California Energy Commission (CEC) developed procedures for enforcement of the RPS Plan for publicly owned utilities. As part of that enforcement �authority, on June 12, 2013, the CEC adopted Enforcement Procedures for local, public�y-owned electric utilities (RPS Enforcement Regulation). �The RPS Enforcement R�gulations require utilities� to �adopt� RPS Plans�� and file �them with the CEC. On October 15, 2013, the City �adopted an RPS Plan — when substantive� changes are made to the RPS Plan,REU provides continual updates. As required by regulations,the CEC uses Renewable Energy Credits (RECs) to track compliance with RPS regulations. One REC represents one megawatt-hour (MWh) of electricity generated �from�a renewable energy source. In 2022�, REU�staff was notified by the CEC that over 121,000 of its RECs that were retired for the 2020 Compliance Period were deemed ineligible due to an administrative error in the ��C's online reporting tool. Staff has continued working diligently .t 4 t �};���21 t3 t�t� �with utility p�artners ��;,�������'t�����,�C's��decision, which�is currently�pending. In response to��the �CEC s current c�������n, �REU` ���{�z��valuated its available resource� options with the goal of avoiding any pc�������1 undue cost bu'���to ratepayers. �,�,t� �=r; , j,z it� y�� tJ;t�j. The RPS En�����ment Regulations a���`�`� for exemptions to avoid disproportionate rate impacts �on utility cus'��ers. Updated languag��'has been added ta the�RPS Plan's Optional�Compliance� Measu�e� �- C`r�`,��{�i�nitatzon section to clarify the ch�racterization and applicability of� Cos��� . tn��� Lirnitation cr�r�'���;,z,�t'�he pro�osed updat��s to the R1'S Plan ensure� REU can leverage those� �Optional Complia��� ,��,������� m t�a���'��`�`����tuation potentially warrants doing so. REU staff� �is �optimistic about reac���iYg��a po��������outcom�t'��th the�CEC that will not require�the use of�the� �Cost Limitation provision; how����; it is imporr;`���to ensure the option is available in the event �it needs to be exercised. '''`�` '{ Y'; � k��� ,t�z = ;th t� �t f ,�'_ �`� �' ,t s �f � t} � EnviNon�nental Review�� `''�'°t� j ,� f���},�' �r� tl''��� f tezi tt � lt tI1 s4 f��� t��i�� t�f � �iFt �s;ii t �si f tt f �ik St}f ��,5,.��f7�i� .;r{f��!„Jr.:,n'f ti3 t tx r ." � 34 This is not a project defined under Califorma En,���f4�mental Q���ty Act(CEQA), and no further t� 5 t� action is�required. `�� r� �� ��yt�l ��t( j7 ;�ti` s t ttt tft( J 11 t t �f��it�Y{ ��r z t r ii s �S�4t 7 Council Pr�iority/City Manager Goals s,f'�1?` � }rt�'r�� ,,� '{t` 't,,$; �� � st.r� ��s�i{}�{�i r r�y t. `t" 7 tj f a i �41�.k���� � 3;sJ�£rt,ti�xiytji7z�,' rl}� 13. .. . � �S�r„>y��,.3a i.,� ar§�� # � • This agenda item is a routine operational rtem t; � t 4 i�: �, t` t,f a ��tj�;�t ' }�ft}S . t� {�}��, �1,��'� � �zn Attachrrcents '�i`>�� ,3 r�"'�'zj�t;�,� ` j r 5�r t'��E�;t;��,,�.. :r{t t${�j� �{(7{5�t�s,,,��i�� �RPS-001 RPS�Policies and PTocedures 3-21-2023 �'��r�' t `'�'$i' '"� ,. DRAFT Redding RPS Procurement Plan &Enforcemen�y�''��i�'"gram 3-21-23 (Redlines) l 1 Procedure No: ;Version: �PApprova) Date; RPS-001 6 4 3/21/2023 � � � RPS Policies & t , � � , ;Effective Date: March 21, 2023 Proced ures .. .._____ .__����. __...... __... .... : . .m__ _____mm�. � � Document Owner; Lisa Casner t ,�,14sto�f ��� �s�l t�itrs t}� : z�(it��rt,�t� t���� }t>Ejs } s i i.t r i�i Et f �44t �"�� �,��i�t t ?� t4 � }t }EE�tfY' }lil f1} 5�y�.��4i� 7�rf.. 1{�{jt� I f t�t>"t E �I `} '� LE�T° 1� �t` 1t�1 LIT°Y a $, ,�jt�75 l {tztzt� r, Resource�t���t ivision }tY�� i f t �;�iJ �17rt{ } s�{ t�4 t���}�5 t� f;i�1? ��a�t r}1�7{i2�sttl� tt� �f FS�� �� �s��'� �rjiztr r� `^v t t,i,�.,�, t fP f1 `` ; trl.t' I � s� ti}{r. � ,tt s 3� RPS-001 Rene�}'�is��les kl'7�rtfolio � �� tx : � Standard Enfoi��7js�,�m� k}}j�}��{P �}� ram and ���rt x� , � ��� ��ItE A�' 4, ,�, ��z,� �1t i j � t ;r, ",t t G j i �Y t 5 4 :2{4:1f, t},u{$£ f4 Pr�+�cure�m�e�nt� �Pla 'n�����'�� � ' `'�$�� ` 4 ,t t�S)£t $ tt�F�t f�' �' i 3 tY � s s ir t�js tn r$11 t1z< £3��. 4 I�1�5E �(7 4st1{(�j{1 ik� ��� ,f i � �t 4i" � tr �:E 7 t 1 �ii 1 � r ytf � �y�tl� t,t�t 1 tt{f y E��t,��t�it �L t� � #y�� '��4 ��t ��3.}y� �j 71�� 'r �41�t� ' z� du+>ss�ifl��� t,. ,�,� ,:::::::. . � w: ________ ______' ___�"�,,.�� � -- t�*� Reviewed By: t�'� �' z� ,r� �4, z �Lisa Casner(Electric Manager�-�Resoy������),Nich���,�f�����`�Electric Utility r Director) �� f�ti�t F � 1��37t.���. �� r J 4 ��{ tS ���}1 },,ix., }zr� ��t�`ijt<r jrtx.�{,,x., +fi} ;'f� ��4'�� � li �;e t t ft�t�� v,,.<itt {�41{,.u.t f't.,..? ; . .. �.:............ ..... ..... ......... .............. ..... .... ..... ...,._....� II �� E'dC�l�l I�' rlC +I I I Adopted By: Redding City Council I. iDate:�March�21,�2023 l TABLE OF CONTENTS 1. introduction ......:...............:...................................:........:...............:..:...................:3 2. RPS Procurement Plan............................................................................................3 2.1 Purpose._.............. .................. .................. .................. ...........,...... .....................3 , ��, �,�� 1,� ��1, t, t � r _ �3di- t 7t zt�.,,,�t t�``t�itt t., E 2.�2 Complia�,�t�,;�'���i'oc�s `�` �����„�� .....,�............ .................. .................. .....................4 �fir�s � . ,{ �,� r`s�i ,, 'r� �fir 7 y t 2.3 Port�,�l��'�Content Categor�t��i;(RPS Enforcement Regulation § 3203}...................6 ��1�`�' ,�;`�'��f� ��'<= t,, ir �ipat��teJ i�1sG ��;� 2.4 Pro��(��ment Requirement�'(RPS Enforcement Regulation § 32D4) ....................9 �,� ,,,, ����t� �,f t 4 i }{ }f 2.5 Reddiri���t`'�����t���;;��S Cor��������� 11 , .. ..,.,.,........... ...........,...,., ..,.....,...,.,.... �}} <t{t r�tr 7 �ritt}t�S� �;;� . i �t u;di� ;,,z,� I t� t�t i {�z��t;t t f��� '�It�t 3. RPS Enforcement Prograr��;� :r......,. ......_�;�'�� .......................................................11 '`t�"�`_ � � � t� � a� �ls t it �� 3 1 Enforcement Polic `` `} ' } t' ` �1�1 � y +t;�i„�{�£�i} �ft'iy�4�� ��i��tfr�nl�r� — .......�........�..,� ......�.,......,,.,�. .L.L ) #. li t l�t 7 it.r� f i�I}�,"�i �it��f t,�i�j�r} �,�jr� � ,.`�tf a t . t k �� t>t 4�t �Z1 � 1r }� , 3.2 Optional Compliance Mea��'r��st ....., �����{}�......... '`����4� .................: ................:.:�.Z }t '�� ,N$�� ,1 t l+#t t� � i�4 � ti t �. . i� t �7 z t tt tf 4. Review and Updat�ng Requiremen�,�;��„����;�� •.• .• ���;��� �� ..........................14 j� ar f ,� k � t k}il� iikrFi� t��� }� S �+��t t(�t j�`t� i��fttit r k�f itt,r ' tt i s �� ti} °� 4 �d t 4 t,f. {y �tis t� Ix f} }t�.� ���r 1 f,. ���� t l`t is?,is<,� t �t� ;�rt t�j �� i;+$i, {f1,t, r ��t }�s5��4'�� ttt ���tylt�>>: , t 4 ,...r., �,st� ci 1 ; st�.,,, rt rtt2:t � t��t 7�} r . � �, p a it��'�y st«+�' }t i 1 it t7 t if1 tsi{3 k r" { t�i{}t `'�{�j�c 4t st, za\ . / t4t }�t,=„�ti�' �f;2 } t�Sf31 '���tc,i��f j�� � u,ik t��, t�j yl.,.,, ttj;t��t„ i � 1. Introduction Senate Bili 2 in the First Extraordinary Session {SBX1-2)1 defines the California Renewables Portfolio Standard (RPS) and imposes minimum renewable energy procurement targets for all retail sellers and publicly-owned utilities{POUs), including the City of Redding (Redding). SBX1-2 authorized the California Energy Commission (CEC) to develop procedures for enforcement of the RPS for POUs. As part of that enforcement authority, the CEC adopted "Enforcement Procedures for the Renewables PortfoTio Standard for Local, Publicly-Owned Electric Utilities" {RPS Enforcement Regu(ations} z and updated regulations were subsequently adopted in 2021. This document describes Redding's RPS Procurement and Enforcement Plan�t���y���+�'�G��`�� by the�Public Uti�l�ity�Code (PUC}sectio�n�399�.3�0(a), which must� be�approved b�€tt����„��t�c�in����,�ouncil. ,f' {��r,�� u;���t y { j tt1, ftjjf r ylitss�t }��t�S 1.1 U������y Code r���'�' ,r�r r x ��� �z,,�,�� s��ri r�f,• z �t tr t, z,, r z it�f } �� Redding rt�f���tains�com�pliance��wit1�a�maltitude r�f state laws that�govern c�rtain�aspect��of � utilit ener` �,'�ortfolio requirements These include th��following code sections, which � ���� � relate to Cal'���St�����,f�,��,��arable Pt�r�f���,��i�tan�dard:� �ll�i �ti�}��� � 7 y?t� 1�t,.! ��li �/�� t t i,��?�t�j�3.,�,5,�r�, �1�y���,i�} ; t t t t s�i +��� Renewable Portfolio Star������requirem���;,PUC § 399.30(a)� s>�, . r � t�� s� �� • Compliance Period and ;�l��curement Tar���s PUC § 399,30(b) and (c) �� �Portfolio�Content Categ�;��s PUC § 39��,��'��) anc��c) Y 1f7� � 4i • RPS POU Compliance PU�t�,=7��9 30���{!t } '; 4�}ts'`,' ', • Optional Compliance Meas;����5�;����`399 �t���,�f`4�#��`''�'t�§399.33 t1,1 �,� f t �t i,'� e��� � �{��ttiil' rl ti a � $;t }Il t t t.. f4#�t�iYl}� 4�#!I}t. 2��.� RPS� Procurement ��Plan� ��$��{�t �� z,�=�,��rr �F� ri2 t� 2.t �`a 7 �� t4 Sur�` ���J t�,4 t; ikyt4,„ i�i rat r, il ���Isf �ts } � }s t�},ISf� 3{�ii�� x<1 1 7rtkti'�x 4 � �yis� . �13� t7srtf�'�:rt 'i,. 2.1 Purpose ' ' � 4t ���1,1�.t.�. �I 5Fs z f' Ji t�it' jJ a t"{t�.,r� tt tJ3 �}I�I z �ttts t St,S.��' The purpose of the RPS Procurement Plan is to identify t��ttT�ol�����}'���'°`procedures for Redding to me�t the RPS requirements and any,future a����C'��t����te=defined renewable� goals. SB350 was signed by Governor Brown in ����r�������i���ng that 50 percent (50%) of� retail sales must be served byRPS eligible resources ��r;�030. SB350 also mandated Redding to produce an Integrated Resource Plan that will guide the Procurement Plan as allowed by PUG section 399.17(d). In 2018, SB100 was signed by Governor Brown, which increased the RPS goals to 60%o by 2030, and in 2021,the CEC approved updates to the RPS regufations. l SBX1-2(Simitian,Stats. 2011,Ch. 1)was signed by Galifornia's Governor on April 12,2011: Z The CEC adopted the RPS Enforcement Regulations on June 12,2013,in Order No. 13-0612-5. 3 2.2 Compliance Periods Compliance periods are defined by multi-year percentage targets mandated by law. Compliance Periods 1,2, and 3 have passed; however,they are included below for reference: A. Compliance Period 1 (1) During Compliance Period 1,January 1,2011, to December 31, 2013, Redding shall procure, at a minimum, renewable energy resources equivalent to an average of 20 percent of retail sales over the three (3)years ofthe compliance � iJ t�j t' i pera�,t,��t`;���'�'t�l,t�,�t,'`�t t�� ,�E�r x,'t� _ ,t,s� � rt`��1�� 3, F }s ,'�>f'���iressed as• r�';,,i t { �{ {f��,{J�Pzoss +EP2olz+EP���>.20(RSzoii+RS2olz+RSzois) t �f; r }t}ii i t��t 4t=',; 37 j£; t � r t ,�t t����� �Where: '�'��'� t � �3� �� '�{t{{`,;,� RSx=total retail sales made by Redding for the specified year X. t�,��< �,��';��� elec��icity products procured for fhe��specified year X; this may include �'������`,���,�+�'�rem���`='`�t���,��t���ric carryover that the� P�OU has chosen to�apply� ,sA�tt.irtit', t�} ��st 7� {�a,it i>� to the'compli����,���"eriod co`����ning�year�X�. �z,; �r��t� ts'tt'�l'� ��t�l ss ��� �j t [ B. Compliance Per���2 ,iY���' ,� , 1��� � �,� �� �'�� ' �t �z i 7rttit �t>71 t (1) For Complianc�{���;����,�,`�,�'���`uaryjl�}{'���{����}k�ecember 31,2016, Redding shall prc�cure�renewable�����y resc��t,�",����"�to me'���;�-��exce�e�d�the�sum�of 20 percent ' �,!�,�� s��x t �of retail sales�fior each ofi 2��,�r��nd 20�15, a��fF25 percent of retail sales fior� t � tY i4 �2016. ���' t�� ' #`�`� tt ti s� f t �} att }rt� it� t� � }r} S �. � s � 7 � 4 j�. � ifS9 jE 1 !,ti�} t4 �ls� ;i }�G: �,( � t1.tt�t , t;t {4 �{ h' �tS ExpreSSeU as. 1,��� f`tx{i�}r,lf��}t ff�;�;i (i�tly�;{t j }�If fe 1 lr Y �EPzv.ta�+EP�oss�+EPao.ts>�0.20�(RSao.���`'�'�.20(RSz���� �`+�0.25(RSzo�s) �it j4 �4 7�tt.7� tt� ttt� t r�,�.:. t rt t �tti 1 ���? '�� C. Complia�nce�Period 3� r,,j t, , �r'���, I �{2 ' i �(I � f � �}3 t lYt tF f��z,�V� t t t' t11 � (1j For Compfiance Period 3,January 1,'„�k'����j�����t���mber 31,2020, Redding shall �procure� renewa�ble en�ergy resources`��C���`'�ieet or exce�ed 33 percent of retail sales by 2020. During the intervening years of Compliance Period 3, Redding shall increase procurement to reflect an imputed compliance obligation. Expressed as: {EP2o1�+EP2ors+EPror9+EP2oro) >0.27(RS2oz�)+0.29(RS2oss)+0.31 (RSios9)+0.33 (RS2o2o) 4 D. Compliance Period 4 (1J Forthe compfiance period beginning January 1, 2021, and er►ding December 31, 2024, Redding shall demonstrate it has procured electricity products within that period sufficient to meet or exceed the sum of 35J5 percent of its 2021 retail sales, 38.50 percent of its 2022 retail sales, 41.25 percent of its 2023 retaiL sales, and 44.00 percent of its 2024 retail sales. Expressed as: {EP2o2s +EP2ou f EPzoz3 f EPzo2d) ?������t�;f�,52o21)t 0.3850(RS2o22)+0.4125(RS2o23)t 0.4400(RSzoi4) � t�t�it r sfr' �}f��ii� �S 3{Sii�'��t i,,,t�- � ' �i tl;{q�;r� � t;�,���'ding may no�{�,�ply Portfolio Conte�nt� Category 3� R�ECs�� in exce�ss of th�e� ,'{t��',`��`iia�ximum� li�mit �����ulated in� �s�ection 3�204 (c)(3)(A)� �tbward its RPS� f� t'i`' '' ;4t ,� ��,,; �procurement targ����r this period. � � ,t 1� {t 1,�� ,� �: ,,4,> E. ,{�,�mpliance Period 5 � �t}'�;}�r � � (1� ����"t'�1��5{��}����alian��,,�����r�tY$��ginning January 1, 2025, and ending December 31, �i���;,�fted���,`�',a�1 z E�tr p Y p 5 {�shall c��,��anstrate it has rocur�d eiectricit roducts � �� x with�in tha� p��s`'��sufficient t��I�eet or��exceed:the sum of 46.00�percent of�its 202�5 retail s�`''���, 50�.00�perce�,`����f its 2026�retail sales, and 52�.00�percenC�of��its� ,s�, ��2027 retail�s���� l�j �r`t' 1�t,t t\yf4 rf t }�f yj ' {t } 3;�7 '.�#f��l t S rr1 ��71 Sz fr f3j tr P� sf tr N r;`r tf t fi,�}r � f ���:{i a zt ,, �E i�t�t� l ..ts 4 7 i Expresse�d as. �� tr, t,,rttt } t,tt �� ,�,f; � r� ��l� � tz s ��P2O2S�"EPIO26�-1-EPIOI7 tk,lt£�s'` �ts}y t, s y # 1 s >0.4600(RS�o2s)+0.5����' zoz6)+0.52���Szoz��, j, � £ . I� � � t �.i'�°#t� s#��7 ,rtti �'� a r�sr �{�£��44i�t }tF 5E }tt� �3i'�� } 4ti Z. Redding may not a�'���}''�ort�����t,����,���'�f�.j�ategc��`j#�{�� RECs in excess of the maximum limit calculated m �`���r�n 3204 ��t���(3)(A) toward its RP5 ��,r ',�,� �rt� procurement�targetforthis period. �t,,�f , t;� 7 l�ifse,�! 7Ir�4£st���y 1�:'}s,��•< t t✓Jf s tr(3 t # �li}.�t � �F: Compliance�Period�6� f,t'tz��,�5„t `,, �;��� � � � > r�� '� .4� t1l$ F},,; t }f�{f tt�( t ifF { ' . . . �t$ t `rt{{�� 2 ul�v� k . (1) For the compliance period beginning���r��ry 1, 202$, and ending December 31, 2030, Redding shall demonstrate it has procured electricity products within that period sufficient to meet or exceed the sum of 54.67 percent of its 2028 retail sales, 57.33 percent of its 2029 retail sales, and 60.00 percent of its 2030 retaiF sales. Expressed as: EP2o2s+EP2o2y+EPzo3o >0.5467(RSiozs)+0.5733(RS2o29)+0.6000(RS2oao) S Redding may not apply Portfolio Content Category 3 RECs in excess of the maximum limit calculated in section 3204 (c)(3)(A) toward its RPS procurement target for this period. G. Compliance Periods Beginning on and after January 1, 2031 (1) Compliance periods beginning on and after January 1, 2031, shall be three years in length starting on January 1 and ending on December 31. For each compliance period beginning on or after January 1, 2031, Redding shall demonstrate it has procured electricity products within the compliance period suff�c����� +;l�r£,�eet or exceed an average of 60.00 percent of Redding's retail �����,����`°���'���;�e calendar years�of th� compliance�period. {��l��t�t)�`' ���zr�i 44 :5 �J1� �Yt 1 il� r2t X, �t3 i��i tt�t#}f{`�X�re$$eC� c"�S, �tt ti ,J' ;� ; EPxs +EPx2+EPxs�����000(RSxs)+0.6000(RSxz)+0.6000(RSx3) } ��Jt� jFtt 4 }. s ' t�ff,49 4/i iti '�`;�;}l Redding may not apply Portfolio Content Category 3 RECs in excess of th'e zf�,,��aximum limit calculated in ��section� 3�204 (c)(3)(A) toward its RPS r` t t', � �`�����i�'��w��t81'��,�"'���"3��`�#�`�e t"I Od. i} l,.y;J ����t7i a' }; Ft4� �}c �' i( Zt�f�b � t �t4 i3,��' r��.t t t t�1} t� �t4 F�.y.. t�(b t i#}4 �+� C�}t�`j� 2.3 Portfolio Cont� 5{ Categori��'#�RPS Enforcement Regulation § 3203J �, � , � , ��, s � �� �ts'� �s'jli�€� r In ad�d�ition� �to meeting th������ewabl� �;���'gy p�r�t ��'t�em�ent ta�rget, th�e RPS� �e�stab�ished � rr , Portfidlid Content Categories ��#,���°r,��;����i�utlir��za,���`��������le� renewable� �energy resource ,4;�,��,�� a�yft t�ir�� r tr products��that must be procured to �ensure cc����r��ance wrt�r�{�� inimum and��maximum values� as summarized in Table 2�.� �5�F`��'t,�� �� '�{f'���t� , �f s �4r �'; it� (t ,j: 7f' yt (}: ` � d �kr' >tt� "� f t jt ii�� �( t i } � A. PCC1: (RPS Enforcement R�����'�ior��,�3203���;=�,}};t�jf� 'rf,{ i' l,j j'�� � z.+ <<s��tY ��c.tt�(f�,�� tfi � . ; �� t�� `y {ar>.-� i Y E.�. ` r �3`�i.�,fxt '`. { (�.} PCC1 �el�ctri�ci�y p�rr�ducts must �be bundled at th�t'���e �of pro��zrement to be classified as PCC1, and the POU may not resell the,�'��lerlyCr��'�'����w'i���'�ity from the elpctricity product�back�to the�el�igible renewab�ef���r��,������rce�from which the electricity product was procured. The�l�ctri���r������J��#`cts must be generated by� �ilr����}Itt r?ri��Zl�r7r an �eligible renewabie energy �resource�������� ��rterconnected to a transmission network withir� the Western Electricity Coordinating Council (WECC) service territory. For purposes of this section 3203, the first point of interconnection to the WECC transmission grid is the substation, or, where generation tie lines interconnect from the eligible renewable energy resource to the network transmission grid. (a) Electricity products must be generated by an eligible renewable energy resource that has its first point of interconnection within the metered boundaries of a California balancing authority area, or 6 (b) Electricity products must be generated by an eligible renewable energy resource that has its first point of interconnection to an electricity distribution system used to serve end-users within the metered boundaries of a California balancing authority area. For purposes of this section 3203, the first point of interconnection to an electricity distribution system is within the service area boundaries of a utility distribution company. (c) Electricity products from the eligible renewable energy resource with a first point of interconnection outside the metered boundaries of a California bala�in���;��,}����ority �a�ea must b�e� schedul�d� �into� a California� bal�anci�g�� � , r �{ t, E ��,''�`�����"�r�����`�����,thout substituting electricity from ��nother source. For� ���z���poses of this�����on 32�03,�electricity generated by the�eligible renewable ,}�,{�,,;�nergy�resourc�� m'���,b�e scheduled into a�Californ�ia balan�cing authority�re� ;�;`f,`'js�` on an �hourly o�r �j��'�hourly basis. The POU's governing board, or �other� ��,`,rt;�t��z` �authority as dele�����"d by th�e POU governing board, �must have ap�proved an ,���,� agreement before the electricity is generated to schedule the electricity from � ,�"� t���'��t��e eligible renewable energy resource�into the California balancing authority� f j�`�`�����ct�'`,���`,�ourl,�l���t��'`�r�����urly basis��. �Jf there� is� a difference b��twee�rt the 1) 4s� s ��}t{ ,5 ��� t t y,� i t�fi ����3 amo�r��"of�ele��������i gener��� within �n hou�r �nd the amoun��of electricity �scheduled in�����'�California b��'��cing authority area within that same� hour, {;,{ � t t' � only�the less��;f�fthe two am�t`'°�ts�shall be classified a$ PCC1. f1 s G��� { l.i t 4y£jt p jt� (d) Electricity pro���;�� ,����;'��„sub����t$� �� agreement between a California �,h4t f �3f s� lrn,' 33��i f t � �t�' t tz ��balancing authori������r�.��`' and ��;�,;��`lanct`����uthority �in which the eligible� ��renewable energy resource,���`�}���cated and r,�,��cuted before the product is ��generated to dynam�ical��`};����rsfier electri��'��''�from the eligible renewa�ble � , ,_ , � �en�ergy resource into t��,��ri'��'�-nia balan�����r�'utho����t��=area. �i i 1 �� s� srii}�#�' ( �5yi� �4� s�t#s' `�t��Y tji Y ��,:, c'�'f�l� � . (3) Electricity products originally qualify��`�r'�'t��t��C1 tha,�,��t�� not meet the criteria ofi 4 f,� i j}�i section 3�203 (a)(2�)(A)and�are resold�—(D)�shall no�,��<counted,��1���C1;�� r st" �i:�t�s�{J} � ;.,�i�t,, }i t ,i �Str�rF. s Jlrf��7j}t.,ir�,3 B. PCC2: (RPS Enforcement Regulations § 3203(b)) ,{�t��t1}j ,J,yj$� }f �.} � : . ��t;`{}'tl��r��`„=','�;'t''�'�� `�� (1)� PCC2 ele�ctricity �products� �must be gen�'����� by an eligible renewable en�ergy resource that is interconnected to a transmission network within the WECC service territory, and the electricity must be matched with incremental electricity that is scheduled into a California balancing authority area. (2) PCC2 electricity products must be bundled when procured and must meet all of the following criteria: (a) The first point of interconnection to the WECC transmission grid for both the eligible renewable energy resource and the resource providing the 7 incremental electricity must be located outside the metered boundaries of a California baiancing authority area. (b) The incremental electricity used to match the electricity from the eligible renewable energy resource must be incremental to the POU. For purposes of this section 3203, "incremental electricity" means electricity that is generated by a resource located outside the metered boundaries of a California balancing authority area; prior to the date of contract or ownership agreement, electricity is not in the portfolio of the POU claiming the electricity products for RPS compliance from eligible renewable energy reso�r���'���h which the incremental electricity�is being matched;�is ���,�'�i����'''�''�y`��`���U,or other authority, as delegated by the POU�govern�ing �� �� 5 :���, ,, tE'`,���rd. ''=i4�rj, >t jt � �}y 2 t�t���� ��� �t � j#t�'��` The governing boa�����r other autharity as delegated by the governing board, , i��s' executes the contf���or ownership agreement for the incremental electricity 4;`"t��4, �at the same� time or after the contract or ownersh�i�p agreement for the�� , i��it j ��lectricity �roducts from the eligible renewable energy resource is executed. 3 t � �,t 4 ts iit 72ua t}tiss�tl tF C f�l��tpti�'�tjf ��>�St . 4s� s��{� �� ,i �t (d) The"`��`�'��ment�����,�1�`ctricity'`���Fst be scheduled into the California balancing t��(4: ,r tt �t authority are�f�'�hin the sam�7�`�lendar year as the e(ectricity from the eligible ��r�newable�et�j�f�gy resource is"��erated. Itt � {�{ t }4j{�t{/„ � tj(t�'tk# ;t t t (e) The electricity����z�,ka�,,�,������e ren��'��t��r�{t$�,nergy resource must be available to be�procured by����r�t���� ��r�d ,,,`�}����i�ot��'�'�'��1 back to that�resource. �"� �� �r f'� �t��x�`,��` �t� ,�, C�. PCC3�:� �(RP5 Enfiorcem�nt Regula�����'`��3203(c)) ��j�'�'� z F �� F �f�,r �rt , '��� ; r, t�t � }t� ��7��, � s. I t�t�t {t ri't 1r �t�uy� �t t t��r All unbundled renewable er�����i cre����,�r��,��j����r�`Cectri����'fproducts procured from eligible renewable energy resources loc�`���"�{='r��`t'�in the,J��{���C transmission grid that {I,z; do not meet the requirements of either PCC1 or PCC2 f���t �Uvithin P��;�,�;1 t ,'ri tt{3,,..;.,�`` t tJ s }� t 4; (i# t j�r �''�i{ t4 r4z ..��5�, b�. PCCO: (RPS Enforcement Regulations § 3202(a)(2)j xl� ;t�t�}:�,t,,y, � �� t��r�`s t t�����.,��� ' ��i i'krtl�s Il�tl�f s}�)i 77 i...� (1) Any contract or ownership agreement c��`�4�`��r��ly executed prior to lune 1, 2010, shall count in full toward the procurement requirements if all of the following conditions are met; (aj The renewable energy resource met the Commission's RPS eligibility requirements that were in effect when the original procurement or nwnership agreement was executed. 8 (b) Any contract amendments or modifications occurring after June 1, 2010, do not increase the nameplate capacity, expected quantities of annual generation, or substitute a different renewable energy resource. (c) If contract amendments or modifications after June 1, 2010, increase nameplate capacity or expected quantities of annual generation, increase the term of the contract, or substitute a different eligible renewable energy resource, only the MWhs or resources procured prior to June 1, 2010, shall count in full toward the RPS procurement targets. The remaining procurement that is additional due to the amendment must be dassified into a portfolio cont����t��„�����ry and as�� long-term or �short-term, and� follow the� portfolio ����'�+��'��°��r��,����,nts and long-term�pr�curement requirement�i�n accordance ,z� z �< Ks fz,��,} s����`�i RPS Enforcect'�;��at Regulations section 3204 (c)and 3204 (d). � t � ��tl${tt�1�'� }�t t i tt��IS� Ffkit;{f�i ,�t�fi� The duration ofth��,��ntract may be extended if the original contract specified �� '`� a rocurement cor� `�itment of fifteen �5 ears or more. + p ��� � �) Y ���1���� r ,����< ���,'��;tl �JS 2.4 Pro'��f;��',�e�l�;�equ�r����#1tS (RPS Enforcement Regulation§ 3204) 1�'� t 13i � ts7lfji �itJsftyij�ij �1�3}� ) 3 } f t t �� �`�'�t ��4i�vf1.3��� t)', tHf ��..� t 4;�41 � i }lis tl��t 1 A. RPS procurement ta�����`for each c�`��i�'pliance period J � )kf 1 ��tt}y 2 Y A POU shall demon�;���te it has pr�'��t�ed el��tricity products sufficient to meet or exceed� th�e procurer�'���� requir�a�����^�s for#��� respective� compliance� periods�listed � ��,� t � G� }filj � �ttfif 5� � t{ �tlty�}SjsUtf e ow: r��� �l� , �� r�ks ,�t > t ��,�{ ��, � it r>t��jFl��` i t f i t 4 f t {� ��� })�{ � .�.Jt.,,.l�a�� �i�" ;}!��"{#�,}i}.`' }y}(�£`. Compliance Per�{�� ` �' �CP 5 CP 6 CP 7 t�� 4 { � Sti �} s i t.���` �;tr7�. t t j4 s r£ 3 i' r . ... 2021 2022 �'`��t#�'��23�s�`� � 202,� r}� `` f ...�2(��'��}'` ...2030 2031... r{17,,..ct.��. >i 4�.�i„�,.E,.,e,t.jt�u�{�(,r �t<=, 5S� {. .�v�:.. tJ tt} f .:.� }{} �; ... 35�.75% 38.5% 41.25% 44% ������ 60%; 60% .r�,<r���,t'` t;1'i���tttil�:a .... �t F 57�; ijlt,l,ir;,, � i s . �i t}��,,•i S E� y'ift �r �� Table 1;RPS Renewable Requiremet��`�3j,`1 j ��`4 fr�„`t��t`�`� �`z �j� i�r{ ., To allow for market and load variations, R��'������r��t`{,��"�'cure additional RECs in each Complian�ce�Period above the values Jisted it��"����"�"�1. B. Exemptions and Adjustments 1, Adjustment for Large Hydroelectric Generation Consistent with RPS Enforcement Regulations § 3204(b)(8), from January 1, `2019, through December 31, 2030, if Redding receives more than 40 percent (40%) of its retail sales from large hydroelectric generation during a given year of a compliance period, Redding is not required to procure electricity products that exceed the lesser 9 of the portion of the POU's retail sales unsatisfied by the POU's large hydroelectric generation, or the soft target for the relevant year of the compliance period. 2. Adjustment for Qualifying Gas-Fired Power Plant If all requirements in RPS Enforcement § 3204(b)(11} are satisfied, Redding may reduce the amount of eligible renewable energy resources that it procures for a compliance period beginning lanuary 1, 2025, if the gas-fired power plant is operating at or below a 20 percent (20%) capacity factor on an annual average basis during a given compliance period.This amount is calculated by the difference between the gas- �fired power��I��'��z����ual gen�eration for the�complian�ce period if�it�had op�erated at a� �20� p��`�t��{�'��C��'��������ity factor on� �an annual� average during the� complian�ce t� a �� a=,,��t ,� perio�l ��}c�rder to parti��,���e, Reddin was re uired to notif the CEC ofi its intentto �r,�,1�� � t���?��, g � q Y act���`�uant to�this exem����n� by April 1, 2019. Redding submitted its��notifPcation to� th�r��C�on March 12, 201���t���n�d the CEC accepted it on July 3�:, 2019. `"�} tt 1,„ 4tyt �ik C. Po����#io Balance Requirements 4i�`,',)IJ t S�{ t SY 11 . '�ti a ,,# y � 'r � �7it3lS ft Q . �i . Beginn���:f�#�}� _, ������nce�����1�,�}�4,��,least seventy-five percent (75/0) of Redding s RPS procuret5r�`�nt shallt���3��'om PC�,�`,�ntracts,�with a maximum of 10 percent of� {� ir,t�� 7r4t f€r Redding's�RPS proc���,�ent from PC���,�RECs (PUC�section 399.16). There is no�dire�c� �l ,71�� rf�> restriction on the p�����ntage of PCC1,��4,r� s� t S f ��{7 l�' t �{L,�Fi�,r�. ` ?r;s'¢7.4'v `�{�s REC ,,� �yt, y �y Complia��'��, ���Z�x�����,�i���� Cor, '�������t�,,�ompliance Compliance Compliance t •, f � xy �� t � g�:1 P2I'IOC.� �. �� ? t`�'"t`��'��,1 L t ���&y�}'��3 >"` tr�fj�t�1'IOC')4 P2i'IOC') rJ� PLCIOC�6 Classification � l�r{�� � 2011-2013� 2014 2016„�,�y"���`�.7-2020 ��,f�.-2024� � 2025-2027 2027-2030 PCC 1 RECs `''`>f � ,`` `��r ; 50% 65%�'�t�' .'�� 75% r, �t'�S5% 75% 75% (MIIIICYIUtII� 'l.�if.rt„��! if��t,{?i��� '��'z� PCC 2 RECS �f',t,���'t; "}f(� }�r � �{� @ � � 4 z ;7'��.: td�1 f;Y{f�S2 �� 4{SS� 7 Zt,}� �'� 1 (NO�IY2C� I1�8 ft tit�`�`�8 �t� y� ttt��:�kr�r! 'tt#���� h�a asYj�s I1�0 i1�2 S7I #�rr � jt lr���' �s S� �Restriction) � ' �,r�,�����ir� � a� f�'f,fs PCC 3 RECs ��`�s�" t 25% 1,5% 10% �! 't'' 1.0% � (Maximum) «�.��,�. ,,,,���yr;`.'t.z.;� � PCC 0 Not subject to portfolio bal�� ';`� c�, '„���fi��nts Table Z:RPS Bal��cmg Re������ � 7 , � ,;, ,�r f�r ��„ �as` �r i�j jg,.ly .�,� tt tt{�1���4.:.i,,, b. Long-Term Portfolio Requirement For the compliance period beginning January 1,2021, and each compliance period thereafter, at least 65 percent of the electricity products applied toward the RPS procurement targetshall be from contracts of 10 years or more in duration or ownership or ownership agreements for eligible renewable energy resources{PUC section 399.13(b)and 399.30(d)). 10 Electricity products will be classified as long-term or short-term based on the contracts, ownership, or ownership agreements through which they are procured. For the purpose of this section 3204 (d)subdivision, long-term procurement refers to procurement from long-term contracts (over ten years in duration), ownership, or ownership agreements, subject to criteria outlined in section 3204 (d}. 2.5 Redding's Plan for RP5 Compliance In order to meet the RPS mandates, Redding plans to preserve its existing PCCO resources, carry forward excess procurement from one compliance period to the next, and look for valuable��opport�������,{���,���csify��a�nd� expand �i�s RPS��portfolio �while pr�tecting Redding's ,�t r �,t�, � � ���,, customers fro{�,�,f���'��sive ra��j3����eases that could�jeopardize economic growth and viability� within the ����� ��;�'t,£ ti$t,�� ,� , $�� r £t�t,4 �t '' i�,,��� r�7 1��. The Integ�^����d Resource Plan (If����}{will be the guiding document and framework used for future RP�;��ergy procurement ef��rts�. Th�e IRP will b� used as�a p�rocurement�guide�finr RPS� ' �``'�� resource ���,��;tity, timing, location, and generation profiiles. The IRP is� filed with the�� xt;� California Ert����,�omrr����on and ��,I�,���low the required timely updates. � ts > ��J��t�it�ti� ���1�� � ? ��y�t�t4 �iy titS���� ` a „1,,,�kz u" r l a�yr E ' x ��{�1 Redding plans to continue eu��j�?��ing eligib��rf��newable power resources and wilC initiate any necessary procurement soli,����tions�consist���lwith the� IRP. �'�t� �� �, x�t`r�, rt �,; t,f��t''S' isSS } 3 ! t�k t if ltrj f} 4{jta �{ �� t it�`t-'�t r � 3 7�)�t itl i f�}t{t�c �'� � 3 1 t5 i t7}F�t it J tt,.i t } t 4 i �{�I��� tzYt s j�t t� Stl� �trS77 �3��. RPS� �Enforcerri�ent�P�rogra� �"��'� '�'�'� ' ' � ��`'�„ t ��z�,� {z{{„�t � � ,� �� � „ 4�tf {G} s!tir�11�� � �t4�t��.. � i t sytt{ ���I� e{{Y t�� 3.1 Enforcement Policy "' ' k�t�{ ,r,� �t z�zf t�� � j:l�§� � t f �t t t r � 2 fl,. s r� F ��}t �i}tr r�i ��i 1t � fs�ll�t' ,:� t4 i1Y 4' i�, 41 . y$„� {f trtjs r st tr j ��i�`�� t13 �1 ln comp liance wi t h t he requiremen���or t he gc���`�''��'��,��ard o f�,},;��t�U to adop t a program far ��,s j�� � enforcement of th�e legislation� prior to January 1, 20�.2, th�,�,��dding G��LCoancil passed Resolution 2011�-197 "Resolution of th�e� �City Council� of th� ��ty of, �������to Revise the fi � Renewable Portfolio��Standard for the City of�Redding's�Electr��;����,�������t'�i�Yi��December 20, 201�1. � , Resolution�2011-1:97�adopted the followi�ng RPS t���,�ts �`z'�' }�i'����'�����'{`��� , �� l�t : F7� }ti,t' i � � ` '°� ..,�m�,> • An average of 20 percent in 2011 through 2013; � 25 percent by 2016; and • 33 percent by 2020 and thereafter. Resolution 2011-197 also adopted the following Enforcement Policies: � Redding will make a reasonable effort in the context of Good Utility Practice to be in compliance with the requirements of SBX1-2. 11 • Redding wiil report to the City Counci)on itsstatus of compliance with SBX1-2 per PUC section 399.13. • Redding will notify the City Council of any potentiaf for lack of compliance with the requirements that may be considered for a notice of violation and penalty imposition. • Redding will provide an explanation and analysisto the City Council on such potentiai for lack of compliance, as well as a plan of corrective action and timeframe for returning the City to compliant status: The Redding City Council approved updated RPS goals on September T7, 2019, due ta the passing of SB 100�,����t�������,�,rated RPS goals�previously established in SB 350 as follows: 7 �,f,t��< � i��14i12tt s� � � fltf f�t��t � t i{s�l'i; ��'� �;�� • 44 p��'���tt by 2024, t��{� F2, � '',� "��t i itl$:," lr + 52 ���`cent by�2027; � 'Y�`� 47 44f1�{� 74 t}�1} • 6�}z��rcent by 2030 and th�`�'eafter, j f4 i; rr, ��� ��;��� �� � ,� z, The Redding �}��;�r4��t�����'�4{��prQ�f��E���z,"�;��ated RPS procurement plan on March 21, 2023, `y� t} tt{7. � f�lt£�tt�'}� }4 modifying how Re��d'i'ng utiliz����`�pl�n's �����nal Compliance Measures�, � �h'�'tis��^� ;t{4i rt tl}J�r,C� it�� �#. ti}!;� I t t� 3.2 Optional Comp���;�nce Mea���,�es t, 1 � f �{ �iz�'� 51${ i�� srt`{�z r t��t,� }t7..,t �1 ��t s s '� }�{ t1 ;t � Specific optional compliance r�'�t��;����}�'�"� per�'t��t`I:���'��w�4�G{re adopted by Redding and the City Council�. �R�dding adopts the �fo�lowing�,����onal com����nce measures, wh�ich may be� � utilized�in th�e�event that facto�rs beyond r��`���iabl�e contro���fi�'�erfiere with its ab�ilityto m�eet the�procurement requirements�set fior��1�;����1��206�ofi the �,��j�Zegu4��ions. 73 i� t) z�J tfi t i; ( fi a t ti.' st iz 1�� 7��i {3 t }i �s r' i � z .} ,�{�t 4 ;,. ) j . A. Excess�Procurement:� ``_�`°"'� t`�"�r=`� ' � `i`'� �} ��'' t�x� � � ,. 1' �t�Y i tr�,aj+t����s��?... .t t tr�.. � ` �klt� 1 ii ��� i Redding shall be allowed to apply Excess Procurement�, },`� one{�� ��1���ce period to ,,tj ,�,j, �J, ,. subsequent compliance periods using the criteria ou�'�������1���,,���6(a)(1) of the RPS� Enforcement Regulations. �� i � ��`''��r��j�'�}�f� � r ��i ����� t�ft y��4 j$ittYt �ti�j4,i �ti4 } �� 3, �{�� r�t�G r 't,�. � �'4t I�Sr�,.,.<:Lr, B. Delay of Timely Compliance: Enforcement of timely compliance shall be waived if Redding demonstrates that any of the conditions defined in RPS Enforcement Regulations§ 3206(a)(2)are beyond the control of Redding, and Redding would have met its RPS procurement requirements but for the cause of delay. 12 C. Cost Limitations for Expenditures: The City of Redding's current RPS poficy requires that Redding pursue target levels of renewable purchases while ensuring that costs for renewable purchases do not result in disproportionate rate impacts to customers. To ensure customers do not face a disproportionate burden, Redding's City Counci) has the authority to implement a Cost Limitation, which may result in the temporary suspension of RPS compliance activities. In this section, Redding establishes a Cast l.imitation on the procuremenf exp�enditure�,,�r�'����,,����ible renewable en�ergy resources u�ed�to com�ply with the RPS, ,� t � f t t zr � consist���'1�,����''�F�'�������`�ement�Regulations § 3206(a)(3�). Potenfial reliance or��th�is� provi��'`�'t�`'�or compl�an`��`��rjill be consistent with the City's Renewables Portfolio� Star����d Procurement ���� and the schedule that satisfies the procurement �,�,,,,� �t f�t, re�����ementsset forth in ���ion��2�4 of this documen�t, , z lJ#ji;�j �t;{}fi, tsr��'. '': Th�'Jt�llowing circumstances may result in disproportionate rate impacts to REU cus�t��� +�����s and may constitute ceuse far the application of the Cost LimiCation � Option'���}�'��`������� Me����`��`� s� 3, ,,f,� �t,�iz , , �rt, ��, � z'1��,;�� � .v. ,��z�>t��, ,t.£ t =� ,ti� � (1) An increase t����i� renewable ;��4�rgy procurement requirements for a given � compliance pe�����1, as set fortt���'�ection 2.4, not based on a change in electric �,i� 4 '� retail sales,�res�'�'��ng in a dev������frorra���dding'sforecasted renewable en�ergy� �rt t4�t, ,sf�� � procu�rement ret����"��k������; r�,���' �� t��}t��4z4� tf t e 42 f s t t t t Y s q t�t 14r{k�� s d r S > � w;�x �i �,.�s,. $�j��tz i,`�v i�} (2) Projec te d cos ts to mee t ren���'�le energy �;���;�uremen t requiremen ts for a given complian�ce period �������� th�e �foreca���,� costs �a�dopted i�n Redding's�� renewable energy�proc���f��`r�c�udget �1`����F'`' ',�z,�,� - �G,, i s�t tt ti� �`� 1 1} ���tr r�j�r ��rt�ty�ta{{ts si 4t t`�� jt �,i,`, ��t�a3r ,�� tit�ttlfrr �}t t a' y f{� When estimating the considered ���'��'�ticuremer�'�4j'���penditure,the following ; , costs will also be included: ~{��,� , .„�{ l t t zjtt�+��itlth}��1;�. � ���t t� �� s��l;.:.�.�„ t 1� t3 J{4{�" }t��bf �1 jt7 � �57 S �� � . ) t F t { f fl t„ni, (a�) The�costs�associated with ther£energy, fi��������������attribute, firming and sha in , and or stora e, as r�;'�� ���� r�'f '��.�s , p g / g ��� �, {�}i,,,��=`�rmittent resources• and�� (b) The costs associated with the delivery of renewable energy. In the event that renewable energy procurement requirements meet the threshold for application of the Cost Limitation Optional Compliance Measure, Redding shall review its RPS Procurement Plan to ensure that alternatives are not available that would otherwise allow Redding to meet its RPS procurement requirement. Such review shall include an evaluation of: • current procurement commitments, 13 • planned procurements, • long-term commitments, and • the availability of aiternative resources in other portfolio content categories. Based on this review, Redding reserves the right to refrain from entering into new contracts for renewable energy purchases that meet any ofthe exemptions listed in its Cost Limitation provisions. D. Portfnlio Balance Requirement Reduction: �,,7 The Port���"�}� '�`����`�����uirement�shall be reduced if�Redding�demo�nstrates that any� of the������"ion��defin;��`�1,��,�PS Enforcement Regulations§3�206(a)�(4) are beyond the con��r��'=�fi Redding, and� R����mg would��have met its Porffiolio� Balanc� Requirements bu�,`���``�th�e�cause�of r�duc���,�� ,�,�{r��`� rnt s� ,�zt�=� �,���,� «, . ���'f� 4: Review ���tl Updat111g REqU10E1'YtE11'C5 (RPS Enforcement Regulations § 3205(a) � � a n d�( )) f����t� b °°� '�ft� , f r°t r 4��t� � ytl�}tiiit�r��t���r1 a2 �t izit{ai,� t�'�itt� ;tit �ity�rj jlt. � �;� tty���t :. t 4 It r1� eie ,,.r,tti..r ts z I f} t a+I�1 Redding is required to campl���,�'n Integrat�',�fi�tesource Plan that will guide the Procurement plan. Redd�ing will provide��1��`�ollowing not���}����regarding new or�updated renewable energy� f �t r r� resources�procurement anc�'��fi`orcement �I'���'�: � i y. �t�s f s i`1 t� F 1 f�y`t}�y4 t r� t i�� � i��{1 rt { � A. Renewable Energy Re��i������`a,�!����rerr���;���'�`���t},4£$�,,, z, t;t� � ��� z itrk7�'j,J z��y :,- , �t}�r l„�� t ��r {1) Redding shal) post notice m accor#���t{� with Chapt�r�t�� (commencing with § 54950) of Part 1, Division 2, Title 5 ofi���,%����'�ernment Co�;�rE�vhen�uer the City�Counci) will , t , z ; 1{ t1 � �{}5: {� F,r deliberate in public on the �����t��c���xnent Pla��x ,j�� Jf�,��{ }}JI .��i<. �y{}r t t).. �i �},yilrtsil` � �tx7f� �t� � #f:tttitt� � lt ,tv t l£§;{S'.t1...����4 � ,��i�� �i �6�.� Enforcem�ent Pla�n {,rr �� 4 T F �{� t71 i { } 4{t� � t4ltti It�t.2 dl`,4�u c t (1) Redding shall provide notice regarding new or upda,���'��������'�iit programs.The 14t I enforcement program must be adopted ���a pu������'t�yl��f�ed meeting offierirrg al( {: interested parties an opportunity to comrri'�����,;'t�,�l,,;r ' J a. No less than 30 calendar days' notice shall be given to the public of any meeting held for purposes of adopting the enforcement program. b. If the enforcement program is modified or amended, no less than 10 calendar days' notice shall be given to the public before any meeting is held to make a substantive change to the enforcement program. 14 Re�rision Na. Reuision Date Summary of Changes 1 10/15/2013 Original version adopted by City Council on October 15,2013 2 10/07/2014 Annual update: Removed �ewiston and added Colusa 3 6/05/2018 Combined Procurement and Enforcement plan. Included SB350 updates, removed Colusa biomass project, added cost Iimitation from stranded assets,and rearranged information for a clearer,concise document. _�� ��, ,�z ��r=;1 4 8/2f�'��`����� ,fw�4 � � � ,t ., �t�����ed to include new(egislation on:��SB100, and SB1110. �„ „t s n„} f, ,tiri� t t:���� �a, � � 1k f 5 j 3�����2021 Upd {a`�'�t�`�o include�new RPS regulatory(anguage from updated regulations �� ��`�t�`�� adopt��,�y CEC in December�2020. �,fi a.;rf' j �. ,�� 6 t� l� �/3�/���� Updat���°optional compliance measure language and corrected FIi{ (;(�. . jtlt� �:i�i�� J.A14 RESOURCES\01 (�����J�JRES AND F��IN65\PROCEDUR�S�RPS 001 RPS PROCUREMENT AND ENFORCEMENT PLAN �� t t �s�'r'�} t jt{t� ; r4�sr�.�i pt�7 77 '{ pj�t i�rtii{��� � . � x{issftiGi� t�rt l��i. `h,�rfiwtr.� ., �J,rt�� r t t $t}i tit �{J�+� =�'7 ;Y jt j�utt�� ir }t jFf{ �{ tf4tE 4 5{�� �k;tt t t l}��: � j.�. 7 tf }� 1 tiSi� } t���t } jf y§� �t� z{itt�{41� jt ti�s}i tit t�il r� }.t �r�t5� ( 47 � 5j cj ir y� r tfrit€c '�{z �r}t}�t}1ii��}�it,tt+t����{ � Ji� 73r� t�t�f���{}{ i �1 s$i ryy t ) t,r, ,,'� �}t .:l � �,4� �, �f7 . Jii�1,` {} ii �} .;k �''� !�t �. L t 51f $tt {{ t : � �f�7{tit(j t���t�� t}�<i�j�$ � 2�fl . t 1 , s'��7t�'t� t7 1`t if�ss�y?f ��},l�t 4 1 l :�i�}t �3������t tit t tr,.j" ��z t i �$t a''� a t� �z�.t�� t�} i,t il{�y {� s y lt t t.- t 7.p�_` f {;r t� { � .. ; 1. , G,2l� ,. � �'�t it r r�,'' �, ���i' t�l y'�i t ' �j sti . � {tfx 4ar,�� ' i}; �1 7 I3�' tSt t£ t i � t 17 ' t Ij��.,�„y- rt i i i 4�i d{t t�i`,s3�= , t�;7f � rl }��{,s �1>r t�it't;}.i�r�tl.�' 1 i�t lif 7 r t7'yt�5 t rl jy,li 4.. 4}�* ��t�� �.{1 ",'7t xb.. t �f,l�;st=,..,d.. 15 l 1 �[CL1] Procedure No:� ;Version: �P Approva) Date; RPS-001 x � � � � � �� RPS Policies & � ���� _����� MMMM ���_ ___�� �. _���mm ' Effective Date: � � �� �" ��°�,� ��: ���� Proce ures ' ;..._.M__._.._____ _._..:�: _...... _........ ......__ _.__..... ...___... .::..:.� � ' DocumentOwner:�;���7r�����c��������t��5u��� , s�ti� f jr.ryf��ir yfi {#s�i� tii ��7�i�a! 1 4i� i� it�I�.7l�tr ��f�t Ity,x,� t r t���r� ,�.r i�7,�tr r. ,i�i� sst y �t i rr� h£r4 i tt tjt i ��,� �i t rtt � s� Y)f}�{Jf 1� f t4 }. y ,Y,hf`�� i�� {E r ;. {4t� � l V =L �f (tu� cft}, „tk j}{�i t Resou rces'`;;��,�rision �1, �� z,� , �s s; 1 � .�,r�t j �tal s�s 2 1 s s4{�i 7 t t y � ��`, 4�1r� t� ��i..���kizi��f�(j�t{ }c�li± '�a��t�`�,,.Lts,,� ! a „ }f�.y�Jtt��., � .t� i t{ ,�� a rt ?�t ft7s7. j�t� RPS-001 Rene ��f4t�{�bles �'�rtfolio 4 3ta x ;r�,1',� }frt�Sl itfj�.t�i� F{i��r �� �Sta�n��d a�rd E n�f o r'�`f��t�Y� ,r � ���`� ��i���j�z`u'f` £�����m a��n��d � �������m 4r,t rtr 1 � � ,� ,S� � Pracur��m�e�nt� �P���la�n '�'`��``�`� `���` t, � } t=;,��} � , �i�,�att �,� Il ��ltj' i?r�' �� '� {,.�J�tzitiF}' sr F�J)��� }# i ft.. t iStfi�t#� �7{}l't i t� 3�Yi13 ��14��� I tl,.i<.t �,# f�ys 1> j t��.t ��z t r��l£4`� r � t 4ttk�{s�� t}S is�yf�' 4i1�7� � i';ii)�}sy itt,l 5����. } t{rt. �;rt I #k,,: � l { . - . # S { � Y i i i � �A/2C� g iy} tt' } ity }�}',�� � R�evie y� �.�������s�r(Electric5������,�'�,,�.l��+�urces),, .�- ( _ __ ,� P�i�����������1(El��tr�c Ut�liC��������'� . .��— 4},}tt� 7 i C Y{a7 �` ir$S{}.; i .s fyi��, '��`t�ci jl�� ¢ k�1,,,t ,���,j,j, 1 k i � ; . ... . ..�.� . 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Re�'dinc� E��e�tri� Utility, ; ; ; iAdopted By: Redding City Cauncif ; ; �Date: ��;..�' o.fi4��r�����,��.��.�. r, r �t��z� , �5� 7 tl i�i�;, {t rt y . �J y.t�{} .ii : £( 71 ]Ft 3 ( };i,:{5�`� � t t� Y II �� ��rf�ll I ki;sst�t i7� � � nf r f rt �� { t I�� r�'�������� tili a�`s�,�F� � ,z �,,� t ,� �t�. 1, , ft, f t:� r �� �< ,�Jti� � �,,; z ��� �r `;h r,r;.t: ,-i����i� ,.�1 v t >r t �t ��{��` (§�it t it s 7 h,k Iftif t��fJtt�,i tG7�4�f��)t�4�a1 7 J� �t� . � ,7r ttt� rz1 r„s.�s . isitr^;i}i}ttt,u�� i t1 tf��{7 + t 12 f�'�,� �7£17jt }t}th;' «S}} . ��Y S i �� }���r ),���. t ��S�� n Y S t�': t' {t f `��t J( �`� d { i s{J �� y 1 tf5 2�li 32j� t� t{i� :�s t lt It� s ;itt{ zi44f�1� t Ft S��F`� . t �kt�'�r i i ir i��{t{ts a t��� }it i �� b°ttt�t �)�it�tt`S£�;�t�t� r4..}� .�s t� �v,�riiy i it t<<t)t��,'x 1 �it�y�,r`. � t�r�}i SFtt i i t; jy .i�tsti F 1 j ili4�1 } j y }t � }{�44}��.. t tjiY t��1 t If�1J yt�} 7 t� k Y y 1t�t�i{�lt�j�t!f �t�' ��� 2�ft.. r tti7 lkjr ��1 tt:itit t. �s���i�' t� tt�k�. �? t47 �y�ir�rttt. � . tlf��s�^� '� ts',? 1 ' i tt�,�. il�i� 7 S fa � ,>� ,isrzrt z�„J,�".i�`�t�� �i'i`E,2,1„�. ���t �r��r z 1 t�1ti �lj'�it � �j sti . � {rfx 4a,,,4 i}; 1� i IS' tSt t£ t i t y�i :t�itt�„y- rtiii4�i d{tt�t`s3�t,..� t�7f � rl }��{,ya,.' �itr �jttjl).t�rbt ., 1 i�t lif 7 r t7'yt�5 t rl jy,li 4.. 4}�* ��t�� �.{1 ",'7t xb.. t �f,l�;st=,..,d.. 2 TABLE OF CONTENTS 1. introduction .....::..............::...................................:........:...............:.::...............:.. 2. RPS Procurement Plan..........................................................................................4� 2.1 Purpose................ .................. .................. .................. .................. ...................4� t � � ���, � „� � {�'�1 I � _ � 2.�2 Com�p�l�ia���'�'��'�`'��ods� � �;,�� �� 5�4� ......,........:.. .. ......:......... .................. t<7�b�a 1. ,ks{ ti, .....�..�.�.......�,�.�.�.� �z i��r� it� ` I�� 4}{f v4 4 rt�•�jrt. l} � 2.3 Port���i�'�i'Content Categor�`�� (RPS Enforcement Regulation § 3203).................7� �t t �_ `�s`t, -- �} {r,: j�1 1. ;,r�a���� ,t, � �2.4� Pro��4'�`�ment Re�quirement���(RPS E�n�orcem�ent�Regulation �§ 32D4) ...�.��.,.�......�.�.�.2�,0�� t}�� �`t,�,r��f 2.5� �Reddin'���i����,t�������'S Co�n ����� . ....... .................. .................. .............. 12 4 � { � i "��•:i��?���,�,1} ,..s�t t�'���i� (.,�rt�.t 11 tsa��4{�:, {�f 2 . t I�y1 2 � t 3. RPS Enforcement Prograr�� " {� 12-� { »� ......... �1��{ .................................................. Y7 ttt S�� ��t i1 j 7 #t��t fi' �fi�yt tft}�. 3.1 �EtlfOt"C2t'Tle�tlt PO�ICy '����r��� ........�.� r��,����� .... ,��fi' ��� ......... .................. .............. ��.2 r �t s � � �„ '�t�` . ,'e"' � r , � t i 4 �� l��r' �i l� Y� � (t U 1 �: 1 t� tJ)t t t t�t#�i�} 7i i+� 1 si ih' Ir� � ti`t �t ia � . � ;t,s��r 2, r ��y t���f �� r � 3�.2 Op�io�n�al��C�m��lia�nce Mea�`�`�S ...... ������£ "......... '��r������ .....�.�.�.�........�.:� .....��.:�.�.....�.:�13� �"`� ,� �� — , � �rl � `� r, « , �r, , , 4. Review and Updating Requiremen�,� �w�����, ���,j�} 15� �,t � � � .s��, ...�.�...�..�.....�......... ,', ,�� � �1 �t�' 'z{ �� � ttl,�tt 1�� �# ���t t �1� i .-. �i ! i �zi�� t it�� f s>' �1{t rt� f .. x�s��s i {j : ;i�}�jj g;t;',a' , �.,� 7 ;t � �'{ts i r ya�rt,,.� ' si�l�${ � � 7r3; ; fr ,., � ti-y ti 1;t�a 1 1 Yi 5 p4 ��yf. ;� t{1 Y}5�' Cstfi�:' � tta:{ t t i r'��t s �1 sr s r� r .}t�t,� �f �E}k�r� � t.,� ,,�r tr �t'��rt�7� , t ��i�, ir t a .. F�t(t t#i4.,... ;�' t f � ri s�ti.,i ti '1 i�,t�tt2 s�...,.�; 3 1. Introduction Senate Bili 2 in the First Extraordinary Session {SBX1-2)1 defines the California Renewables Portfolio Standard (RPS) and imposes minimum renewable energy procurement targets for all retail sellers and publicly-owned utilities{POUs), including the City of Redding (Redding). SBX1-2 authorized the California Energy Commission (CEC) to develop procedures for enforcement of the RPS for POUs. As part of that enforcement authority, the CEC adopted "Enforcement Procedures for the Renewables Portfolio Standard for Local, Publicly-Owned Electric Utilities" {RPS Enforcement Regu(ations} z and updated regulations were subsequently adopted in 2021. This document describes Redding's RPS Procurement and Enforcement Plan�t���y���+�'�G��`�� by the�Public Uti�l�ity�Code (PUC}section�399�:30(a), which must� be�a roved b ''�'" pp ��`''����=,���t�c�in����,�ouncil. �+f'`{`�� `� �;���t ' ;��, �` ��Ir },��trf �� t,t t 1.1 U������ Code r�����'. ,r�r r x �t sf� si�'t�,�yr� 37zr�i��` tz s 1 li: �; tI t 4 r` Redding rt�f��J�tains compliance witF'�`a maltitude of state laws that govern certain aspects of utilit ener' �,�ortfiolio requirements These include th��following code sections, which � ���� � relate to Cal'����St�����,�����arable Pt�r�f���,��i�tan�dard:� �11y� tt�:r{�€�`�(its ti �S ������.'4� �lij Jr�t���t »i� ,»i�,,,{t, 7t1: 7�11t{5 t�� . ��t��s�E +��� Renewable�Portfolio Star�������requirem���}PUC § 399.30(a)� • Compliance Period and���'�curement Tar���s PUC § 399.30(b) and (c) �� �Portfolio�Content Categ����s PUC § 39��,��'��) anc��c) •� �RPS�POU Compliance PU����`����9 30���{��;'�''; 4��ts'�,'��` , • Optional Compliance Measi�����`��'}{'�,�{�399 �t���,�f`4�#��`''�'t�§ 399.33 1 ;rt t,��� Il,s ,t { f � ,���t � ���fi`�� �r�, �'' �7, t,.� r, i ``}t,t,l� t �' 2��.� RPS� Procurement ��Plan� �4���4},�t �,�t �� _ �F� s� t { , f , , , �{ � tz� t,3 f; ; �,{r� , t � , 43 .r r � i t2 s �, tt { \ 4s #� ss t�t rvty�b' f�� }1� x��� t�ft��'��� tt ��� 2.1 Purpose �f ' t t 3 r� '�n�;trtiJ.'. ;{�z SFi, r J al,dtt�r� tl� tla . � }�t���� ar y' �{4 �f����� The purpose of the RPS Procurement Plan is to identify tt��;�o,�����,�r;��$t�''procedures for t( 1� F t�f4 1}t'„r��` Redding to meet the RPS requirements and any�future a��,�,���������te=defin�ed renewable� goals. SB350 was signed by Governor Brown in �����<��������ing that 50 percent (50%) of� retail sales must be served by RPS eligible resources`��`��730. SB350 also mandated Redding to produce an Integrated Resource Plan that will guide the Procurement Plan as allowed by PUG section 399.17(d). In 2018, SB100 was signed by Governor Brown, which increased the RPS goals to 60%o by 2030, and in 2021,the CEC approved updates to the RPS regufations. l SBX1-2(Simitian,Stats. 2011,Ch. 1)was signed by Galifornia's Governor on Apri) 12,2011. Z The CEC adopted the RPS Enfdreement Regulations orrJurre 12,2013,in Order No. 13-0612-5. 4 2.2 Compliance Periods Compliance periods are defined by multi-year percentage targets mandated by law. Compliance Periods 1,2, and 3 have passed; however,they are included below for reference: A. Compliance Period 1 (1) During Compliance Period 1,January 1,2011, to December 31, 2013, Redding shall procure, at a minimum, renewable energy resources equivalent to an average of 20 percent of retail sales over the three (3)years ofthe compliance � iJ t�j t' i pera�,t,��t`;���'�'t�l,t�,�t,'`�t t�� ,�E�r x,'t� _ ,t,s� � rt`��1�� 3, F }s ,'�>f'���iressed as• r�';,,i t { �{ {f��,{J�Pzoss +EP2olz+EP���>.20(RSzoii+RS2olz+RSzois) t �f; r }t}ii i t��t 4t=',; 37 j£; t � r t ,�t t����� �Where: '�'��'� t � �3� �� '�{t{{`,;,� RSx=total retail sales made by Redding for the specified year X. t�,��< �,��';��� elec��icity products procured for fhe��specified year X; this may include �'������`,���,�+�'�rem���`='`�t���,��t���ric carryover that the� P�OU has chosen to�apply� ,sA�tt.irtit', t�} ��st 7� {�a,it i>� to the'compli����,���"eriod co`����ning�year�X�. �z,; �r��t� ts'tt'�l'� ��t�l ss ��� �j t [ B. Compliance Per���2 ,iY���' ,� , 1��� � �,� �� �'�� ' �t �z i 7rttit �t>71 t (1) For Complianc�{���;����,�,`�,�'���`uaryjl�}{'���{����}k�ecember 31,2016, Redding shall prc�cure�renewable�����y resc��t,�",����"�to me'���;�-��exce�e�d�the�sum�of 20 percent ' �,!�,�� s��x t �of retail sales�fior each ofi 2��,�r��nd 20�15, a��fF25 percent of retail sales fior� t � tY i4 �2016. ���' t�� ' #`�`� tt ti s� f t �} att }rt� it� t� � }r} S �. � s � 7 � 4 j�. � ifS9 jE 1 !,ti�} t4 �ls� ;i }�G: �,( � t1.tt�t , t;t {4 �{ h' �tS ExpreSSeU as. 1,��� f`tx{i�}r,lf��}t ff�;�;i (i�tly�;{t j }�If fe 1 lr Y �EPzv.ta�+EP�oss�+EPao.ts>�0.20�(RSao.���`'�'�.20(RSz���� �`+�0.25(RSzo�s) �it j4 �4 7�tt.7� tt� ttt� t r�,�.:. t rt t �tti 1 ���? '�� C. Complia�nce�Period 3� r,,j t, , �r'���, I �{2 ' i �(I � f � �}3 t lYt tF f��z,�V� t t t' t11 � (1j For Compfiance Period 3,January 1,'„�k'����j�����t���mber 31,2020, Redding shall �procure� renewa�ble en�ergy resources`��C���`'�ieet or exce�ed 33 percent of retail sales by 2020. During the intervening years of Compliance Period 3, Redding shall increase procurement to reflect an imputed compliance obligation. Expressed as: {EP2o1�+EP2ors+EPror9+EP2oro) >0.27(RS2oz�)+0.29(RS2oss)+0.31 (RSios9)+0.33 (RS2o2o) 5 D. Compliance Period 4 (1J Forthe compfiance period beginning January 1, 2021, and er►ding December 31, 2024, Redding shall demonstrate it has procured electricity products within that period sufficient to meet or exceed the sum of 35J5 percent of its 2021 retail sales, 38.50 percent of its 2022 retail sales, 41.25 percent of its 2023 retaiL sales, and 44.00 percent of its 2024 retail sales. Expressed as: {EP2o2s +EP2ou f EPzoz3 f EPzo2d) ?������t�;f�,52o21)t 0.3850(RS2o22)+0.4125(RS2o23)t 0.4400(RSzoi4) � t�t�it r sfr' �}f��ii� �S 3{Sii�'��t i,,,t�- � ' �i tl;{q�;r� � t;�,���'ding may no�{�,�ply Portfolio Conte�nt� Category 3� R�ECs�� in exce�ss of th�e� ,'{t��',`��`iia�ximum� li�mit �����ulated in� �s�ection 3�204 (c)(3)(A)� �tbward its RPS� f� t'i`' '' ;4t ,� ��,,; �procurement targ����r this period. � � ,t 1� {t 1,�� ,� �: ,,4,> E. ,{�,�mpliance Period 5 � �t}'�;}�r � � (1� ����"t'�1��5{��}����alian��,,�����r�tY$��ginning January 1, 2025, and ending December 31, �i���;,�fted���,`�',a�1 z E�tr p Y p 5 {�shall c��,��anstrate it has rocur�d eiectricit roducts � �� x with�in tha� p��s`'��sufficient t��I�eet or��exceed:the sum of 46.00�percent of�its 202�5 retail s�`''���, 50�.00�perce�,`����f its 2026�retail sales, and 52�.00�percenC�of��its� ,s�, ��2027 retail�s���� l�j �r`t' 1�t,t t\yf4 rf t }�f yj ' {t } 3;�7 '.�#f��l t S rr1 ��71 Sz fr f3j tr P� sf tr N r;`r tf t fi,�}r � f ���:{i a zt ,, �E i�t�t� l ..ts 4 7 i Expresse�d as. �� tr, t,,rttt } t,tt �� ,�,f; � r� ��l� � tz s ��P2O2S�"EPIO26�-1-EPIOI7 tk,lt£�s'` �ts}y t, s y # 1 s >0.4600(RS�o2s)+0.5����' zoz6)+0.52���Szoz��, j, � £ . I� � � t �.i'�°#t� s#��7 ,rtti �'� a r�sr �{�£��44i�t }tF 5E }tt� �3i'�� } 4ti Z. Redding may not a�'���}''�ort�����t,����,���'�f�.j�ategc��`j#�{�� RECs in excess of the maximum limit calculated m �`���r�n 3204 ��t���(3)(A) toward its RP5 ��,r ',�,� �rt� procurement�targetforthis period. �t,,�f , t;� 7 l�ifse,�! 7Ir�4£st���y 1�:'}s,��•< t t✓Jf s tr(3 t # �li}.�t � �F: Compliance�Period�6� f,t'tz��,�5„t `,, �;��� � � � > r�� '� .4� t1l$ F},,; t }f�{f tt�( t ifF { ' . . . �t$ t `rt{{�� 2 ul�v� k . (1) For the compliance period beginning���r��ry 1, 202$, and ending December 31, 2030, Redding shall demonstrate it has procured electricity products within that period sufficient to meet or exceed the sum of 54.67 percent of its 2028 retail sales, 57.33 percent of its 2029 retail sales, and 60.00 percent of its 2030 retaiF sales. Expressed as: EP2o2s+EP2o2y+EPzo3o >0.5467(RSiozs)+0.5733(RS2o29)+0.6000(RS2oao) 6 Redding may not apply Portfolio Content Category 3 RECs in excess of the maximum limit calculated in section 3204 (c)(3)(A) toward its RPS procurement target for this period. G. Compliance Periods Beginning on and after January 1, 2031 (1) Compliance periods beginning on and after January 1, 2031, shall be three years in length starting on January 1 and ending on December 31. For each compliance period beginning on or after January 1, 2031, Redding shall demonstrate it has procured electricity products within the compliance period suff�c����� +;l�r£,�eet or exceed an average of 60.00 percent of Redding's retail �����,����`°���'���;�e calendar years�of th� compliance�period. {��l��t�t)�`' ���zr�i 44 :5 �J1� �Yt 1 il� r2t X, �t3 i��i tt�t#}f{`�X�re$$eC� c"�S, �tt ti ,J' ;� ; EPxs +EPx2+EPxs�����000(RSxs)+0.6000(RSxz)+0.6000(RSx3) } ��Jt� jFtt 4 }. s ' t�ff,49 4/i iti '�`;�;}l Redding may not apply Portfolio Content Category 3 RECs in excess of th'e zf�,,��aximum limit calculated in ��section� 3�204 (c)(3)(A) toward its RPS r` t t', � �`�����i�'��w��t81'��,�"'���"3��`�#�`�8 t"I Od. i} l.y, �rit7j .t' };.<F4t4� �}� 3 i( ���fr�� t t fd�'"}. 1 t t i#}4 ��:�} tti{}4,i 2.3 Portfolio Cont� 5{ Categori�,�'#�RPS Enforcement Regulation § 3203J �, � , � , ��, s � �� �ts'� �s'jli�€� r In ad�d�ition� �to meeting th������ewabl� �;���'gy p�r�t ��'t�em�ent ta�rget, th�e RPS� �e�stab�ished � rr� r Portfidlid Content Categories ��#,���°r,��;����i�utlir��za,���`��������le� renewable� �energy resource ,4;�,��,�� a�yft t�irr� r tr products��that must be procured to �ensure cc����r��ance wrt�r�{�� inimum and��maximum values� as summarized in Table 2�.� �5�F`��'t,�� �� '�{f'���t� , �f s �4r �'; it� (t ,j: 7f' yt (}: ` � d �kr' >tt� "� f t jt ii�� �( t i } � A. PCC1: (RPS Enforcement R�����'�ior��,�3203���;=�,}};t�jf� 'rf,{ i' l,j j'�� � z.+ <<s��tY ��c.tt�(f�,�� tfi � . ; �� t�� `y {ar>.-� i Y E.�. ` r �3`�i.�,fxt '`. { (�.} PCC1 �el�ctri�ci�y p�rr�ducts must �be bundled at th�t'���e �of pro��zrement to be classified as PCC1, and the POU may not resell the,�'��lerlyCr��'�'����w'i���'�ity from the elpctricity product�back�to the�el�igible renewab�ef���r��,������rce�from which the electricity product was procured. The�l�ctri���r������J��#`cts must be generated by� �ilr����}Itt r?ri��Zl�r7r an �eligible renewabie energy �resource�������� ��rterconnected to a transmission network withir� the Western Electricity Coordinating Council (WECC) service territory. For purposes of this section 3203, the first point of interconnection to the WECC transmission grid is the substation, or, where generation tie lines interconnect from the eligible renewable energy resource to the network transmission grid. (a) Electricity products must be generated by an eligible renewable energy resource that has its first point of interconnection within the metered boundaries of a California balancing authority area, or � (b) Electricity products must be generated by an eligible renewable energy resource that has its first point of interconnection to an electricity distribution system used to serve end-users within the metered boundaries of a California balancing authority area. For purposes of this section 3203, the first point of interconnection to an electricity distribution system is within the service area boundaries of a utility distribution company. (c) Electricity products from the eligible renewable energy resource with a first point of interconnection outside the metered boundaries of a California bala�in���;��,}����ority �a�ea must b�e� schedul�d� �into� a California� bal�anci�g�� � , r �{ t, E ��,''�`�����"�r�����`�����,thout substituting electricity from ��nother source. For� ���z���poses of this�����on 32�03,�electricity generated by the�eligible renewable ,}�,{�,,;�nergy�resourc�� m'���,b�e scheduled into a�Californ�ia balan�cing authority�re� ;�;`f,`'js�` on an �hourly o�r �j��'�hourly basis. The POU's governing board, or �other� ��,`,rt;�t��z` �authority as dele�����"d by th�e POU governing board, �must have ap�proved an ,���,� agreement before the electricity is generated to schedule the electricity from � ,�"� t���'��t��e eligible renewable energy resource�into the California balancing authority� f j�`�`�����ct�'`,���`,�ourl,�l���t��'`�r�����urly basis��. �Jf there� is� a difference b��twee�rt the 1) 4s� s ��}t{ ,5 ��� t t y,� i t�fi ����3 amo�r��"of�ele��������i gener��� within �n hou�r �nd the amoun��of electricity �scheduled in�����'�California b��'��cing authority area within that same� hour, {;,{ � t t' � only�the less��;f�fthe two am�t`'°�ts�shall be classified a$ PCC1. f1 s G��� { l.i t 4y£jt p jt� (d) Electricity pro���;�� ,����;'��„sub����t$� �� agreement between a California �,h4t f �3f s� lrn,' 33��i f t � �t�' t tz ��balancing authori������r�.��`' and ��;�,;��`lanct`����uthority �in which the eligible� ��renewable energy resource,���`�}���cated and r,�,��cuted before the product is ��generated to dynam�ical��`};����rsfier electri��'��''�from the eligible renewa�ble � , ,_ , � �en�ergy resource into t��,��ri'��'�-nia balan�����r�'utho����t��=area. �i i 1 �� s� srii}�#�' ( �5yi� �4� s�t#s' `�t��Y tji Y ��,:, c'�'f�l� � . (3) Electricity products originally qualify��`�r'�'t��t��C1 tha,�,��t�� not meet the criteria ofi 4 f,� i j}�i section 3�203 (a)(2�)(A)and�are resold�—(D)�shall no�,��<counted,��1���C1;�� r st" �i:�t�s�{J} � ;.,�i�t,, }i t ,i �Str�rF. s Jlrf��7j}t.,ir�,3 B. PCC2: (RPS Enforcement Regulations § 3203(b)) ,{�t��t1}j ,J,yj$� }f �.} � : . ��t;`{}'tl��r��`„=','�;'t''�'�� `�� (1)� PCC2 ele�ctricity �products� �must be gen�'����� by an eligible renewable en�ergy resource that is interconnected to a transmission network within the WECC service territory, and the electricity must be matched with incremental electricity that is scheduled into a California balancing authority area. (2) PCC2 electricity products must be bundled when procured and must meet all of the following criteria: (a) The first point of interconnection to the WECC transmission grid for both the eligible renewable energy resource and the resource providing the 8 incremental electricity must be located outside the metered boundaries of a California baiancing authority area. (b) The incremental electricity used to match the electricity from the eligible renewable energy resource must be incremental to the POU. For purposes of this section 3203, "incremental electricity" means electricity that is generated by a resource located outside the metered boundaries of a California balancing authority area; prior to the date of contract or ownership agreement, electricity is not in the portfolio of the POU claiming the electricity products for RPS compliance from eligible renewable energy reso�r���'���h which the incremental electricity�is being matched;�is ���,�'�i����'''�''�y`��`���U,or other authority, as delegated by the POU�govern�ing �� �� 5 :���, ,, tE'`,���rd. ''=i4�rj, >t jt � �}y 2 t�t���� ��� �t � j#t�'��` The governing boa�����r other autharity as delegated by the governing board, , i��s' executes the contf���or ownership agreement for the incremental electricity 4;`"t��4, �at the same� time or after the contract or ownersh�i�p agreement for the�� , i��it j ��lectricity �roducts from the eligible renewable energy resource is executed. 3 t � �,t 4 ts iit 72ua t}tiss�tl tF C f�l��tpti�'�tjf ��>�St . 4s� s��{� �� ,i �t (d) The"`��`�'��ment�����,�1�`ctricity'`���Fst be scheduled into the California balancing t��(4: ,r tt �t authority are�f�'�hin the sam�7�`�lendar year as the e(ectricity from the eligible ��r�newable�et�j�f�gy resource is"��erated. Itt � {�{ t }4j{�t{/„ � tj(t�'tk# ;t t t (e) The electricity����z�,ka�,,�,������e ren��'��t��r�{t$�,nergy resource must be available to be�procured by����r�t���� ��r�d ,,,`�}����i�ot��'�'�'��1 back to that�resource. �"� �� �r f'� �t��x�`,��` �t� ,�, C�. PCC3�:� �(RP5 Enfiorcem�nt Regula�����'`��3203(c)) ��j�'�'� z F �� F �f�,r �rt , '��� ; r, t�t � }t� ��7��, � s. I t�t�t {t ri't 1r �t�uy� �t t t��r All unbundled renewable er�����i cre����,�r��,��j����r�`Cectri����'fproducts procured from eligible renewable energy resources loc�`���"�{='r��`t'�in the,J��{���C transmission grid that {I,z; do not meet the requirements of either PCC1 or PCC2 f���t �Uvithin P��;�,�;1 t ,'ri tt{3,,..;.,�`` t tJ s }� t 4; (i# t j�r �''�i{ t4 r4z ..��5�, b�. PCCO: (RPS Enforcement Regulations § 3202(a)(2)j xl� ;t�t�}:�,t,,y, � �� t��r�`s t t�����.,��� ' ��i i'krtl�s Il�tl�f s}�)i 77 i...� (1) Any contract or ownership agreement c��`�4�`��r��ly executed prior to lune 1, 2010, shall count in full toward the procurement requirements if all of the following conditions are met; (aj The renewable energy resource met the Commission's RPS eligibility requirements that were in effect when the original procurement or nwnership agreement was executed. 9 (b) Any contract amendments or modifications occurring after June 1, 2010, do not increase the nameplate capacity, expected quantities of annual generation, or substitute a different renewable energy resource. (c) If contract amendments or modifications after June 1, 2010, increase nameplate capacity or expected quantities of annual generation, increase the term of the contract, or substitute a different eligible renewable energy resource, only the MWhs or resources procured prior to June 1, 2010, shall count in full toward the RPS procurement targets. The remaining procurement that is additional due to the amendment must be dassified into a portfolio cont����t��„�����ry and as�� long-term or �short-term, and� follow the� portfolio ����'�+��'��°��r��,����,nts and long-term�pr�curement requirement�i�n accordance ,z� z �< Ks fz,��,} s����`�i RPS Enforcect'�;��at Regulations section 3204 (c)and 3204 (d). � t � ��tl${tt�1�'� }�t t i tt��IS� Ffkit;{f�i ,�t�fi� The duration ofth��,��ntract may be extended if the original contract specified �� '`� a rocurement cor� `�itment of fifteen �5 ears or more. + p ��� � �) Y ���1���� r ,����< ���,'��;tl �JS 2.4 Pro'��f;��',�e�l�;�equ�r����#1tS (RPS Enforcement Regulation§ 3204) 1�'� t 13i � ts7lfji �itJsftyij�ij �1�3}� ) 3 } f t t �� �`�'�t ��4i�vf1.3��� t)', tHf ��..� t 4;�41 � i }lis tl��t 1 A. RPS procurement ta�����`for each c�`��i�'pliance period J � )kf 1 ��tt}y 2 Y A POU shall demon�;���te it has pr�'��t�ed el��tricity products sufficient to meet or exceed� th�e procurer�'���� requir�a�����^�s for#��� respective� compliance� periods�listed � ��,� t � G� }filj � �ttfif 5� t{ �tlty�}SjsUtf ti;i below: � ,�,1� „ �� ;r��ks ,�t t> t ��;,{ r,�,f Sir,,, ajvl r t t� f ' fS�t� � .�.{.,,tdafi,. C���, 3}7;c{�t i,`.��" k7}r t. C�arrrpl��n�� P�r� ' �1� � �; �� S �� 6 �� 7 �r.;,�F� t� ��. � ttt } ! ' {�#�� � i �F�� _ Zo�� zaz� tk�� �rl� ����,�t�,, 20 �f����'�� ...z � � eee2o�a �Q��.... .,.,�tri,�� t�t 1 t�r.r;i;e r�,�,r,t, ;i,� ,,,.,,,?. ea' �'�t S�Ss��.t.�<<*z, ��t�.l _ 35.75°l0 3�,5°l0 �1.25°/`0 4�°l0 �}�� 601�a 60°l0 — � t.��,.,, �,,.� ,��,�_;. t ��t�11 � ft,'i ��{���,t �tt � t p�i�}��� ' �C9�?f�_���i'�sr�2Y2�'WCd�?12_���UtY�IPIE'��4 � z rt�''�ss.�. :— — - — ��{} y t t t., �c� ��Icaw��ti��� r������� ��� �a��d�r��i��t%�r��„ R�����j�� ���� ,�_,` ���4��r� ���i�iic�r��� 6�I�C� i� ���fl� .�....mm ..�.... ,�.� ��� , � f z� � ��r�� �i�������� P�c�r1�� �b��� �tl��^�r��u�� &e���s� i�`������ �. �— � . ��� ��� e. „� �� � � ���� ��� ��� 10 B. Exemptions and Adjustments 1. Adjustment for Large HydroelectricGeneration Consistent with RPS Enforcement Regulations § 3204(b)(8), from January 1, 2019, through December 31, 2030, if Redding receives more than 40 percent (40%) of its retail sales from large hydroelectric generation during a given year of a compliance period, Redding is not required to procure electricity products that exceed the lesser of the portion of the POU's retail sales unsatisfied by the POU's large hydroelectric generation,or the-soft target for the relevant year of the compliance period. J)tt j�i 4 ��, � ���st k � 2. Ad�u��${t��J���t����t`����fying Gas-Fired Power Plant � 7 4�jz:fttr [ ){ �tt � ktly f� If al�4t'y�`��uirements in RI��;'}�nfbrcement § 3204(b)(11) are satisfied, Redding may re���e the amount of el����le renewable energy resources that it procures for a cr���'�liance period begi�nn����t'�`January 1, 2025,�if th��gas-fired power�pla�nt is operating� at ����;below�a 20 percent (2�`0%) capacity factor on�an annual average basis during a giv��tr'��mpliance period.This amount is calculated by the difference between the gas- fired�����;�`���4��f�4�����ctua���,�c�'�����n for the compli�nce period if it had operated�at �i�r.;a; 1 �' 't t ` ,7� `il 1 i, a 20 perc����a�`����/) c��`�,�„r�� �ac'����t;t�an �an annual �average� during the� com�plian�ce period. In�order to p����`t'pate, Reddii�'�,was req�uire�d to�notify Ch��CEC�of��its inten�t to act�pursuant to this{���mption by A �,�������., 2019. R�edding�submitted its�notifi�cation to�� �the�CEC on March 1�j����019, and it �'j��,�accep���!by the CEC on July 31,�2019. s, 3 � � t tt, � `i��if� t : tiit �it��� l�r��j�j� z� �. �1 r(�'�ti ��ta,�,,.'�j� i is i; �� t.�6< r �C. Portfolio�Balance�Requir�l����� ,� r, 4`��` '�f��$ 1 r � y�i,{4 t t �$, , ��ti,s,x t� ,��r i Beginningm-�����-m��� �m���=�.����u�����pliance Penc���, at (east���-������s�r��°�-fi�re� perce�nt (��Sl) of'��Redding's F�$,,��� ���d�� �rern�nt� � '�`� `�� � .�`���hall be `��Y���� L�� � ����� w�, }£�J���� p : frt�m P���.�. contracts����� ���r��� � � �c��f � ��qs����S��c���r�r��r��i ���, ��� ,����r ��.��r ��� � a fa�aw����° �k��C:��c�. ' ����� � � m��° � ��� �� �� � �.�.. �x�, ��� � ���� ������"' ` �.�� ,��-�� , ' � �c�������-lP�;,t�ection 3��t�t������w� ��� �,�,�,��� � �� . ��.��q��C��" tlS��3 �;��a�����'S��"!t;�B4�� C90"� �.�i����E°�'C.�' � �? � ","���2],' 4 � , r��t r s. �s ti t t (�t; ���,,,� ,�h i.�'.�,��rk., �;s�,r... li��w Compliance Compliance Corr�����c� J���'z���'�`nce Compliance Compliance �stjtt`�� �r�f 3J�cr ,., ����»���Fsr�ti�a��. Period 1 Period�2 Pet�� �� ��.��� I�eriod 4 Period 5 Period 6 ?a _. � t}�s�„�.4 2011-2013 2014-2016 2017-2020 2021-2024 2025-2027 2027-2030 PCC1�"�E��_ 50% 65% 75% 75% 75% 75% (Minimum) PCC2�2E�� (No Direct n/a n/a n/a n/a n/a n/a Restriction) PCC3�2E�� 25% � � � � � (Maximum) 15/ 10/ 10% 10% 10/ PCCO Not subject to portfolio balancing requirements Table 2:RPS Balancing Requirement 11 D. Long-Term Portfolio Requirement Far the compliance period beginning January 1,2021, and each compliance period thereafter, at least 65 percent of fhe electricity products applied toward the RPS procurement target shall be from�.�r�tr��N.� �a� �m��+���� c�uF ii��sr� ir-����r�ti�ai�c�r c��aH�����,F�i,�^�aMrv ca�+vr�c�u shii�M���r��rc����r��f�au� �I���S�� r�r���+u�b��_�:r��r�� r���a�ur��.�:�M.��!�_ ���twa��� ��� ���k��r��_��� ��D�d�}.,��m� �-�������°�������-�����-�_���_ _�_� Electricity products will be classified as long-term or short-term based an the contracts, ownership, or ownership agreements through which they are procured. For the purp���,�f{��,is section 3204 (d) subdivision, long=term procurement refers tikz�� t }{ tj 4 t xt to procu�;,� ������`�#�i,1���,�term contra�cts(over�en years in�duration), ownersh�ip, or owne�i���{��greements,'°���u�ect to criteria outlined in section 3204 (d). � t j t Y71 t�uJ' t t t�. (}t{{� j�S�t i tt7,` �;�4 2.5 R���ling's Plan for ��� Compliance {fl�(. ��l:t.. � F }tt. In order tc�' ,`��et the �RPS�� m�a�n�dates, Red�din�g plans to preserve its� existi�rtg PCCO �-est�u�rces, ��7�, carry forwar�����cess pr��urement fr��n one compliance� period �to �the next, and look for� valu�ble oppo�!������;'�'t�����ver�����',����`��'��nd its RPS��portfolio while protecting Redding's� ,n� '„�4,�� � ,fi i�vit� '} S`} customers from excessive rat�{�����eases th��`��uld jeopardize economic growth and viability r�,�� with�in�the�City. t�,;,�`�'�� �,tf�� t,; Z } tf ;${� �.� (�� �t, �Ir t t 4 r , The Integrated Resource PI�`�;{��IRP) will }�����i{e gui���� document and framework used for , fiuture RPS energy procureme'�`���,��r���,,'���'���IRP,�t��€�{���t`�����! as�a procurement�guide fior RPS� resource quantity, timing, locati�i�,'�'�'nd �ge�;��'��ion prr��,��s. The �IRP� is� filed with the� California Energy Commission and will follt��'��ke required tij���ly updates. �c�iit }�: 1� 7 ii���#r� Redding plans to�contin�ue evaluatin�t�����s�l����newable�r'��,��r�re������es and will�initi�aCe any necessary procurement solicitati�r�`��,�"�onsis`��$����;���}�;f{';��_�` IRP }�r{�zY ` ' �) . ,{�.,�;.,j,tw4�' , f�f�� . ;7 5�t�i�� �' � ii.t4� f yiYts{t��it,;t}�q �#� t i� t I�4ii is4.,�.-, (�tl�. } � fzi�t4t',��t. si } 1t��?��t,{47t, 3. RPS Enforcement Program `'` s '�''``F`tzt'"`;7 �t� t � j�,1 7 4 yl�y�t. ,��rri ��tS�t:;tti}rs. tJ r ,7�i,tt.Y:�s'j 7� �,�m � Enforcement Policy ln compliance with the requirement for the governing board of a PDU to adopt a program for � enforcement of the legislation prior_-to January 1, 2012, the Redding City Council passed Resolutinn 2011-197 "Resolution of the City Council of the City of Redding to Revise the Renewable Portfolio Standard for the City of Redding's Electric5ystem" on December 20, 2011. Resolution 2011-197 adopted the following RPS targets: 12 • An average of 20 percent in 2011 through 2013; • 25-percent by 2016; and • 33 percent by 2020 and thereafter. Resolution 2011-197 aiso adopted the following Enforcement Policies: • Redding wilf make a reasonable effort in the context of Good UtilityPractice to be in compliance with the requirements of SBX1-2. • Redding wiil�����r��{Q the City Council on its status of compliance with SBX1-2 per PUC S2CtiOfl ��,�1��.,`u�„: r�.�ir,�t�ts��� fs' �} I} t �.. .. t t { }}N i th t r�i;�4�`t t • Redcl;���i7�ill notify the �`��r`}�ouncil of any potential for lack of compliance with the rec����;�'i�nents that may�be���sidered�for a�notice�of�violation a�n�d penalty im�position. , �� , t�rt� • R�;��ng will provide an e����nation and analysis to the City Council on such potential ,� fo�`=`Et�,��k of compliance, as well as a plan of corrective action and timeframe for �� ret��;����the City to compliant status. ��s4f x � � , c ��t s��it �r�astltSl�t���'4tr��� . sii�i��t{�il�t�i�i3 �� e t�Ft�'Y.«,..{jtsa sfr°tr�i}t;.v� � �'' t� . The Redding City Council ap$����d updat�t����PS goals on September 17, 2019, due to the pass�ing of SB 100, which ac�����ated RPS go�{����previously established in SB 350 as follows: ���`«��i� ����=�j t�� � s��� � � '� t `��'� �r •� 44�perce�n�t by 2024, s��t'�{�� y>�'���r'���r' ,�z�'%x��� i �1 t ?v t t. + 52�percen� by�2027, '�"�t' ,z��;�',''���i:„r=�rt' {,f� ;`�,.,;`i.'��j�v`.rt���t�� s�3t,r�i,r�. �}} zi� t{y{ �� ....._ y �}�tt��� ft xr� � 60�p�ercent by�2030�nd thereafter ,,�,t f��' ;'L� p,� �f{� � �,,� ;z111{ i ( t SY(j k .;it ft jts�' i t}rgit t�triit{� 2{fl.. µ���k' s�'�n`�61i�-� +, I �e�t�;s= ��'���t�k�*,s�{ �c�� �����t� t����r�s,l,�������r�I z„t,{# G.���.k��',t,,�����i��3I�� ��{m mm�s��l"��'M.:W��- �...�.., ��"���k �.:��c����.�� � ���a�R���,GF�� ��ti�Nz.�.. �_.._� . � .�.�� ��a�j������� �1��s������� � G �� � � ��s �h� I�r� � �����.�. � ..� ��F�z ,it}� itFj !tt}I.ttrS� ,. §4tt f � t t�l�tt,}.�d" (S 4rs�� ! 1 r'�t i�s�j,���. 1� t j( { t{Sf n�` 3.2 O p ti on al C am pli an c e M e a s ur e sJ�j,t ss ��1��� ,j�',4,�r{'t'{�� ' #�rjr$s�l{sti t�s��y„$ 7'= � .. Specific optional compliance measures are permittedtzand are adopted by Redding and the City Council. Redding adopts the following optional compliance measures, which may be utiiized in the event that factors beyond reasonable control interfere with its ability to meet the procurement requirementssetforth in § 3206 of the RPS Regulations. A. Excess Procurement: 13 Redding shall be allowed to apply Excess Procurement from one compliance period to subsequent compliance periods using the criteria outlined in § 3206(a)(1) of the RPS Enforcement Regulations. B. Delay of Timely Compliance: Enforcement of timely compliance shall be waived if Redding demonstrates that any of the conditions defined in RPS Enforcement Regulations§ 3206(a)(2)are beyond the control of Redding, and Redding would have met its RPS procurement requirements but for the cause of delay. �r�if , i �:�trtYtih� f's ��� C� l.�sl� 1.� E k!2�r.k .1}rr,<s(t;rr;tS�J!}S S , ��r[��r��`'�S��I C��7,�.�d�tures.�. ���ti"$�:k '��'� �e4�Q�C�IfI"� '� ��&N'�`}� ��4���5 .G�uE� 0'� �llfl'�� ��r�8: �'.°��C�C�p�"�;� d��S�#4� l«��: �� dG�1��II� �� � u� `�, ��a�k�l� ����r��tl���s�s�r��uo� 't 't��s�����A�� ��N���t �a�s���s f��u�r�u���r�k�G� ���r�����������:� c��a r��� �����a��l� wr��� ���..�m� �e�u���������� ���� ����'���;�� ����� ��s����n��� m�:.��.. _ �r� ��s n���....�_ ........�.�.� ��s����^ �a���s��ann°� f�c�:� ��� e��� �`�� �����������...��r���� I����c�ar�:�"�������C.���������I��°����0��<�����r��� ����r������������u��� �:�r�s�� �� ...... .. �irr����'� � ��� �rh��h� r�as� r��u�l� ur��A����r� �c�r ��,�s ��,�ca�� c������F����aii��Iw��i�����.��ii�ii�E��, �.T. �Y �����.��.� �?_ ��m�� _._���� .��..��.�__�..�.�.����._�, tlt{ t tt��;s�,t ��j it��.f t s7y{til�t�r s _... � � !; {r5�t'�t�i�7t ,t{t i' � 1 . �a t �x,� k;1 Stt 7�t..xrs � rt r�(t t}t r i Ir�a���i� ������:ii� Re���;�r���"' establi��r�� a� Cost� Limitation on the prt�cu�rement� ��� ��� __.�T� expenditures for all ��`���ile renewabl��;,�;nergy resources used�to�comply with the RPS, consistent with I��PS£�,���orcement Re���;�tions §�320�6�(a)(3) ���.������;�a�i s����,��€�����;. ��������,��,M� . , �t� t .t.`�,�..�:��"t 2 s��: �i,d t �..E�k�r�€i���� �`..� �.� zf������� 7 �1"�I. ��s}i-�r'��. ��.��� ���"�z � �..� y=^��. �, -��' a z �� ,.m.t„'z.:�.� ' ., 4 2 �'x ��, 2 �, t �$ �" a ���.@ '�d` �, t �� ts € 4���°��i�.x�l�vo�'s' 't s;� a°a'�a��z� "�#4�'��s t ��������� 4m � t� t s ���t�� ��l�`�'�`+��€� �"� � a � a �.. 4� �� ����� � 5.�.,� �,�,d��^s .��.�� �„,,� � _�__�______ �. th�g4 @ S3f t'9�( y5 t z ti't Jt fi, t�rY�1 ttt4 k�4 1{� ��`���..�E4�iY � '� � +QE��° �����dC�1�Y#C t ]4�1 1'a' jit 1 i f� (f7 1 .�.. .,,.,...A:. ................ ._._,�e.. ,.. .._, ... ....,.... �t 141�. i �, ��i i�f. �f t ttlf� � .`, ,�y � i Sii�'t}14i� 5Y j t. lJ t � Y tt� f�f{� s��s� r Z�}t,� f��1�.. ��, £ tJ}�� s�.itt, '�tr�� Y � ilt�slr t : 5 i�� I7 t. t4�„ ,} If��t,�'t t kt3 G�p .; �i 1�r r tz �.�`k& {{t +3 t i ti ti � � xp.� *� 4�� ��t�,�jqf Ct�3..F.€ "�° ���$�"COSI LI�}����IOII �.� �,��:�"';�w�k��"x'����,r� t;P �s��m �i�€�.�.F1� � *�:1,.�c ��C�tIE:�.P�t .. x .................. .... ...,.,.. ...... ...,..,.,. ��C�t3t?��il�'..a g�s�����t�����t�� �?�.�.���ri��"�o-��„�§�c3�-a���,�-��������',�,m�"r���'����h-����e? �������COfl5lC�ef��"lE�O��OWlllg. . � } � t }�# 5 � t}t�'�itrrtif}( }tC�: ��......... � � , m w .�. t�i.t� Y o- � � �,b t � � �' ��., ��Yi ^'k `e'�' N' ��� � Y .. —seuw.a-"a�ika.a—un�.+a. � ���� , m7"' :J:, ��� �' }1t E(,,, 2 t t x,�,.. �����'.��.�.�."���"Ait:., ��. � X � ,„+��. �j,,. 1 . Y}5 ,��...v �����„ ,�•����..����., ����� ������� `'' y� �n �,.N'N'a x j P 4 ?�,t.�J X�}� ti1j� �-� €E'��i�?fa ���t;;�iP����-»,„`�����a�,c,���.� �� �"r,��"� --a���s-�`x`-�,tv�;�,�;��,„ �r�i;�2��--���ir� '�-��-�`.'"�����....��� "[� �"����°tc t����z��+� �-�`l�� ���.A�..�.� ..�w�..a �"$.� w...w.�����.�A._��w��am� '!z?mi€`s"�.,`.—�a��.���a�-����.`��c��� ,�xs���. ��,;����,*����'�'�'e'���:x� �w�';.���z�����`: `���c:a��`��:.���`;�£��`-��t�':;�-S"-��$i��."-�"�9���C� _ � _�. .. __ � _ .b�_�...� . _.��0" d-�� .:._._��u�a___� n���� w.._��-��:1���-� ��u��� � �6�"�������.��.�..�._.m�.����"�a .,�.,���.��_���.��e ..�_�_�..� �_�.����_� _. ��������������������������a r����� �. � _ �k�N� ��...�...��.� � t��t��r� G��.�,���n�� . �r��r m.��r�a�;��ir�rr�mc�r�,� ra�� ��r�rr��r�t� ���,��c��r�;�, �h����h�������. �� t�a � �h�u����:�..����t��� ����i��������vilN.k����ar�si���n���V����rrim�ti�au���r��rr� r�<.�r� ���� _.� th� ��r�����, 14 �a�..� -��'o�'��d6���.�t�'i��� C�u��..r:_....t�zS�a�:':`t� �G�_ II'�1E.'f°� N�"�"lE��^k/el�S��" F`�"��I"�� ��d„P��111��.'V'B�E.'II�'� � � _..� _ �� _ n... �. � ^ � �rc��IC�����+_��3C ��➢� �Itt��G �°4lI°�'��l�Ia3��CE� �7�'�II��rc�:r��-�TM,-ik�� ���%xe��`��_c`k�?t.t�t�� �,a,.ts� ��€-�€�?Ci�::� '��1t�?"�. �'� �...`it°t:.e.�..S'x� ���1`t� ;�ti.ra.�t�h �,;� .33 a.�"��` �w`���'t:a�£`E` �:3�.ifa-r� `�-�-�'e�'�;:�-��'"�fi����'�;? a. ���cat, �a��� ��.�. m�� �omm_.�� �,�����':�,�����s-��;'-4'�:mm��"��N� ���" ���15��G=°C��C� "a� C�I�Z��� Q���P�bl°�a��� I�4llP"�&�"V3 �:� ��a��CYCY��"V"',�o ���� ����`?� _�_� �__�__�����c���� ������.����_������_ �.�_�.�_�.m_�.��.��_��.m� ���_------���-� . ��i������ ������������ ���������' ��'�������� :���c=' ������������ii� :- �������� ti�����-�-�u���������° ...�-���s�� .��-�� .. �������-�����;"������ �6� n.. .� ��c� T�:�������-����� ..�o-� .. �u���.. �-���-c���:�--_ (3) When estimating the considered RPS procurement expenditure, the following costs�u,�#� �����t�� mcluded: � t4 1�l'''4t ; qt�t� S� 7 . tt t''f Y1§;ri j f: { 4 �i;iZ ��� f.i£ttCi t t `� " , � �js}4�4�Yi}<t;4 � ��9� ��'1��` �"��"'Vf��d��S��E' d�.$�C"9����C���fiYtll�Il�i� C3t'IU � �$ � Thep ogts ���ciated g ith � � t�� �r ,,`` sha in , anc� �1�stora e, as needed for intermittent resources; and rs�ti�u{ : )$t�tr 57}7� {�2 yr 1 ttti1� tj� �t t yi , , . �� G,� (b) �Th�e� �costs ����aated�� �with ������ �������r��. � ���� �N��� �c��l������ ca��G �ren�ewab�le� t4 � t: i�4t{}�i�=4 energy. }r,��s�� In the`4�}'��t{�;{�����{,�' �ts� ts `��`���,�rocurement c�ac-������w=�������r�e�a�i��rt��ri�����s ����� �G��� `"�11����`����al�# �.��z.,,}�����'���'�N�������;��,� . � �����h� Cost �imitation.......�3.�a�.�..c�w��ll ��r��.a�i��������� �����o�,�,,�`��dding shall`;;' i .�,� � ���������e�� its �RPS Procurement Plan to� . {i!{i�f. k4#Ftt�f ensure that other c��'��ons are not a�;�t����able that would otherwise allow Redding to �� '� �'�t�f�� � �� meet its RPS procur����nt require�#��� Su��"�t�view will include a�u�u����evaluation��of comm tmepts�candrthe�����'�j����4�����fi'���o'fr`al ts�'�����e��rr���� rcesr n othe ents, long-term ' y ��f, ���� portfofio content , 14t t� 5� categories. d� ��s � ���� ���b� ����a���= �� {` �� �� ��=��k �'�'� � �,��� �£� refirain from entering ..e �.., . �u . W� . � _W into new contracts for renewak���}'`���ergy purcha�'��'t� -���-���-�--��that �exce�ed th�e� ,;�,r�i ,�tt r � " z i quantity ����-t�r���a�M�B��� � ����o�, ���l�;k���st ��i,����tion �r�ii�ac�r�, t t t t _""" ... ...�.u.. r'}}tt y��3 .�tJ t �,Jy � T,�a� �1 t i ! i I t �,r•� t i: t�,�s�` � tyt}�t5{., �� t s}�r , }i,r � r i rrr��7�vu�l4,rci� .ttt�ta t D. Portfolio Balance Requirement Reduction: =j;5 �, ,��, tt tt�t{i$ . 1 Ys�t tt��.;s�r,3�: 3 ���t ij �fs,� The Portfolio Balance Requirement shall be reduced �j����,+�f,����i�`��'��rionstrates that any of the conditions defined in RPS Enforcem��r`�{�e�,��,�����#�r�'�206(a)(4) are beyond the control of Redding, and Redding would ha��',,������t������ortfiolio Bala�nce Requirements butforthe cause of reduction. 4. ReVIeW a11d Updat111g ReqlllPei11e11tS (RPS Enforcement Regulations § 3205(a) and (b}) Redding is required to complete an Integrated Resource Plan that will guide the Procurement plan. Redding will provide the following notice regarding new or updated renewable energy resources procurement and enforcement plans: 15 A. Renewable Energy Resources Procurement Plan (1) Redding shall post notice in accordance with Chapter 9 (commencing with § 54950) of Part 1, Division 2, Title 5 of the Government Code, whenever the City Council will deliberate in public on the RPS Procurement Plan. B. Enforcement Plan (1) Redding shail provide notice regarding new or updated enforcement programs. The enforcemer�� �t������ must be adopted at a publicly noticed meeting offering all inter�st������''��'��`�°��r��,���rtunity to comment. tj tr ss ., tytitu utrr 1 s�" �'t��ii; t I � �r�,tj#,,�i�lo less than 30 ��I��ndar days' notice shall be given to the public of any ,�,`�;t;�` meeting�held for p���ses of adopting the enforcement�program�. f,,'s � �, } , , t � 4��'�, If the enforcement program is modified or amended, no less than 10 calendar ti�f4� � ��r���ays' notic�shall be given to the public�before any meeting is held to make a �"�r�`������������ha n����#�1����;�����fo rcem e nt�p rogra m, ,,,u�„��a��,�,�,. q ti ii�f<. 1£ i�t i t t t:� ,� ';� t'" � ({�t �! n4' ��s t't s.���' i�Is t�£ � yx �} t{. 14! {I'S l 4 � f )t- £`f t y , { i t Stl t�x' �t l�ft�t4 t�l } 1 rt}tr f :`�,..;£`x' ,t n ,l�1:� , . : �,"��k ��t"a £"k �'-�x�� �,��1��.�=��"r` I Re�isian No. Revision Date S �� £� �������ange��������i��'.��������� `� ���.Y,��� ���tiY� ���� ( � � � � � � � 1 10/15/2013 Original versiona;t��d by City Cour����,�n October 1.5,2013 u,4fi.�,t`r}�.},' t�t„t�,l, )k �� 2 10/07/2014 Annual u��������`��ved Lewist4�,;��`�fadde�����usa z 4 ��, � �zr�r� ��t.=: ,u�„ � t t t'„> ( ttr il i tJ < : 3:a' f }S. 1Ssij�,�t' t tt t�i, t;�1 t1 s:,, it5 � . 3 6/05/2018 Combine�"Procurem���'��'�at�'���r`cement���` Included SB350 updates, removed�Colusa biomass project,added��'��'�imitation froKn�stranded z�,_� assets�,and rearranged information for,�'���arer,con,�,����{�f��'��ment. .,,r ,� , �t���, IlS t�' �a t,y4< � .� ( r � t z�� 4 8/26/2019 Updated to include new legislation ot�a������z$���`SB1110. �}��r t arf "iYt i7� �.c.} .:sn� � � 5 4/20/2021 Updated to include new R��l�������'ry language firom updated regulations adopted by CEC in December 2020. �a ����,���7;,��, 6� a�����.._�s��.:�i_�an�d ca�����f_E����� �rr�c��G�r�I���������.����i��ir�s�.p�r��ic�d. _ _�_... _ J:\14_RESOURCES\01_PROCEDURES AND FILINGS\PROCEDURES\RPS-001 RPS PROCUREMENT AND ENFORCEMENT PLAN 16