PURPOSE

Adopt the California Municipal Utilities Association's California's Publicly-Owned Electric Utilities' Principles addressing Greenhouse Gas Reduction Goals.

BACKGROUND

California Municipal Utilities Association (CMUA) brings publicly-owned utilities together to speak with one voice to the Legislature and regulatory agencies of the state. CMUA was formed in 1937 to protect the interests of California�s consumer-owned water, electric and gas utilities before the Legislature. The role of the Board of Governors is to set policy on matters that may impact publicly-owned utilities.  

At the June 2006 Board meeting, the CMUA Board of Governors adopted the attached principles addressing Greenhouse Gas (GHG) reduction goals. Not stopping there, the CMUA Board recommends that these principles be adopted by City Councils of local publicly-owned electric utilities.

Briefly, the principles say:

1. Each utility will develop a GHG reduction plan.

2. As required by state law, each publicly-owned utility will first acquire all available energy efficiency and demand reduction resources that are cost-effective, reliable, and feasible.

3. Each utility will pursue renewable energy supplies, then other non GHG emitting energy resources and clean fossil resources.

4. Each utility will support standardized, mandatory GHG reporting.

5. Each utility will provide measurement and verification.

6. Each utility will provide education on ways for customers to reduce their GHG emissions.

ANALYSIS

Burbank Water and Power (BWP), a publicly-owned utility, is a member of CMUA. CMUA represents virtually all of the publicly-owned electric generation in the state, which accounts for about 25 to 30% of the state�s electricity. The remaining and majority of the state�s electric generation is supplied by investor owned utilities (IOUs) - Southern California Edison, San Diego Gas & Electric, and Pacific Gas & Electric.  

What are the principles meant to do?

Having CMUA and the individual City Council�s of each of the local publicly-owned utilities adopt a statewide policy it lends more credibility and legitimacy to our effort. In addition, CMUA will be better able to communicate and represent a united front to the Legislature and state regulatory agencies regarding the planned reduction in GHG emissions by publicly-owned electric utilities.

Recent developments on GHG

In June 2005, Governor Schwarzenegger established greenhouse gas emission targets intended to reduce greenhouse gas emissions by 2010 to 2000 emission levels, by 2020 to 1990 levels, and by 2050 to 80 percent below 1990 levels. Since then, there has been increased activity and pressure by the state regulatory agencies and the Legislature to reduce GHG emissions. Following suit, the Burbank City Council also passed a related GHG Resolution last year.

In addition, this year Assembly Speaker Fabian N��ez (D-Los Angeles) introduced AB 32 � California Global Warming Solutions Act of 2006: Greenhouse Gases. AB 32 will require that the California State Air Resources Board to adopt regulations establishing a program requiring mandatory reporting and verification of statewide GHG emissions; and adopt a statewide GHG emissions limit, effective in 2020. AB 32 is making its way through the legislative process.

With all this activity, we anticipate that there will be pressure from the environmental community, the Legislature, and state regulatory agencies on the local publicly-owned electric utilities to advance similar reductions in GHG emissions. This policy is meant to help alleviate some pressure by showing a combined and coordinated effort on the part of all the publicly-owned electric utilities.

FISCAL IMPACT

Any impact related to the GHG reductions would be considered when a specific project or agreement for such planned reductions is taken under consideration by the City Council.

RECOMMENDATION

The Burbank Water and Power staff, with the support of the BWP Board, recommend that the City Council adopt the CMUA California�s Publicly-Owned Electric Utilities� Principles addressing Greenhouse Gas Reduction Goals.

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