Title
Adoption of Resolution Approving Participation in California's Clean Fuel Reward Program and Delegating Authority to the General Manager to Execute the Participating Electric Distribution Utility Joinder Agreement to the Clean Fuel Reward Program Governance Agreement. (Alameda Municipal Power 10491900)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
Staff seeks City Council approval to participate in California's Clean Fuel Reward Program through the Participating Electric Distribution Utility Joinder Agreement. This Agreement requires City Council approval as there is no specified term of the Agreement. All participants to the Agreement, including Alameda Municipal Power (AMP), can voluntarily withdraw from the Agreement at any time. On November 14, 2022, the Public Utilities Board adopted a Resolution with a recommendation for the City Council to approve participation in the Clean Fuel Reward Program.
BACKGROUND
The California Air Resources Board (CARB) developed the Low Carbon Fuel Standard (LCFS) program in compliance with Assembly Bill (AB) 32 (the Global Warming Solutions Act of 2006) to reduce the carbon intensity of transportation fuels used in California by 10 percent by 2020 and 20 percent by 2030. Under the LCFS program, providers of alternate fuels, such as electricity, generate credits that can be sold to producers of traditional fossil fuels, helping those entities meet AB 32 emissions reduction requirements. Electric Distribution Utilities (EDU) that provide electricity for residential electric vehicle (EV) charging are eligible to receive LCFS base credits based on the number of EVs in California and the number registered in their service territory.
AMP has participated in the LCFS program since 2015. Through the first quarter of 2022, AMP received approximately $3 million from sales of LCFS credits. Based on current market prices, AMP holds an additional estimated $1.0-$1.5 million in unsold balance of LC...
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