REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
DATE: 06/05/2024
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
SUBJECT:
Title
COMMUNITY RENEWABLE PROJECT PARTICIPATION
End
EXECUTIVE SUMMARY:
This staff report asks City Council to approve the Customer Developer Agreement with RB Inyokern Solar WDAT 1203, LLC., to enroll in a community renewable program and approve a Memorandum of Understanding outlining the roles and responsibilities for marketing the community renewable program to the Corona community.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Authorize the City Manager, or his designee, to execute the Customer Developer Agreement between the City of Corona and RB Inyokern Solar WDAT 1203, LLC., for the purpose of enrolling in a community renewable program for eligible City of Corona electric accounts with Southern California Edison.
b. Authorize the City Manager, or his designee, to manage the operation of the Customer Developer Agreement, including the authority to determine to terminate or take other actions, including amendment.
c. Authorize the City Manager, or his designee, to negotiate and execute the Memorandum of Understanding between the City of Corona and PowerMarket.
That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.
Body
BACKGROUND & HISTORY:
The State of California has aggressive renewable energy goals and interest in residential rooftop solar has increased significantly in recent years. However, rooftop solar can be cost-prohibitive to some residents and impossible for others. For example, renters do not have the authority to install rooftop solar, residents of apartment buildings don’t own their roofs, etc. Community solar is a program that allows those who cannot install rooftop solar to participate in an off-site solar project and realize solar energy's financial and environmental benefits. Southern California Edison (SCE) has a list of approved programs available on their website: https://www.sce.com/residential/rates/standard-residential-rate-plan/Community-Renewables-Program. City of Corona residents who are currently customers of SCE and do not have rooftop solar are eligible to participate in these programs.
RB Inyokern Solar WDAT 1203, LLC., is constructing a community solar project in Inyokern, California. The Inyokern community solar project will be the largest community solar project in California and will be operational by the end of August 2024.
Once participants subscribe to the community solar program, and the site is operational, the subscribers will begin receiving community solar credits on their Southern California Edison (SCE) bill each month. SCE sets the value of the credits and is subject to California Public Utility Commission approval. The subscribers then pay 90% of the value of those credits to RB Inyokern Solar WDAT 1203, LLC., realizing a 10% savings on that portion of their bill. As an example, if a customer received a $100 credit, $90 would be paid to RB Inyokern Solar WDAT 1203, LLC., and the resident would save $10. While the customers do not receive the solar energy directly (that energy is fed into the SCE grid locally in Inyokern), participants will have Renewable Energy Certificates (RECs) retired by SCE on their behalf, allowing all participants to claim the use of renewable energy.
ANALYSIS:
The program elements include City enrollment and City-sponsored outreach to the Corona community.
City Enrollment
The City has 33 eligible accounts that use a combined 380,000 kilowatt-hours (kWh) each year. The City will enroll these accounts into the community solar program at a savings of approximately $4,000 per year. The current credit for GS-1 account types is $0.10866/kWh, of which 90% is paid to RB Inyokern Solar WDAT 1203, LLC representing a net savings of $0.010866/kWh. The 33 eligible accounts and estimated savings are outlined in the following table:
|
Site |
Estimated Annual Savings |
|
CFD 2018-2 |
$26.65 |
|
Harrison HOPE Center (City Manager’s Office) |
$541.58 |
|
114 E Sixth St (Corona Mall) |
$159.37 |
|
155 Corona Mall (Corona Mall) |
$78.85 |
|
Keith WST DW |
$11.93 |
|
Arlington Desalter Connection DW |
$29.77 |
|
Harlon Hills BSTR DW |
$107 |
|
Hummingbird PR Station DW |
$17.43 |
|
Jameson WST DW |
$44.88 |
|
Crossings (Electric) |
$78.44 |
|
Corona Pointe (Electric) |
$76.33 |
|
Dos Lagos Substation (Electric) |
$266.72 |
|
Grape Hill Fire Communications IT |
$252.09 |
|
Grape Hill Fire Communications IT |
$428.70 |
|
LMD 84-1 |
$26.23 |
|
LMD 84-1 |
$37.17 |
|
LMD 84-1 |
$14.44 |
|
LMD 84-1 |
$22.89 |
|
LMD 84-1 |
$22.86 |
|
LMD 84-1 |
$41.99 |
|
LMD 84-1 |
$98.85 |
|
LMD 84-2 Zone20 |
$56.24 |
|
Sierra Bella Park |
$54.94 |
|
Jameson Park |
$312.97 |
|
Stagecoach Park |
$251.31 |
|
Rimpau Park |
$72.28 |
|
Chase Park |
$55.33 |
|
El Cerrito Park |
$254.58 |
|
Auburndale Rec |
$137.53 |
|
Buena Vista Park |
$258.22 |
|
Orange Heights RW BSTR RW |
$133.42 |
|
Artisan LS WRF |
$140.42 |
|
N Main LS WRF |
$22.85 |
Outreach:
The community solar program is also available to renters, residents of multi-family properties, lifestyle community residents, religious organizations, non-profits and small businesses. RB Inyokern Solar WDAT 1203, LLC., has designated PowerMarket as the authorized designee for RB Inyokern Solar WDAT 1203, LLC. If approved by City Council, the City would allow PowerMarket to use the City’s logo and branding in its outreach to the community. In addition, the City would provide virtual outreach about the program using the City’s social media platforms. PowerMarket would create a landing page for the Corona community where residents can sign up to participate in the program. PowerMarket will conduct a six-month outreach campaign.
FINANCIAL IMPACT:
Approval of the recommended actions could result in potential annual savings by fund as shown below:
|
Fund |
Amount |
|
Water Utility Fund 570 |
$211.01 |
|
Reclaimed Water Utility Fund 567 |
$133.42 |
|
Sewer Utility Fund 572 |
$163.27 |
|
Greenfield Electric Utility Fund 578 |
$421.49 |
|
General Fund 110 |
$2,176.97 |
|
CFD 2018-2 Special Tax B Sierra Bella Fund 237 |
$26.65 |
|
LMD 84-1 Street Lights Fund 446 |
$264.43 |
|
LMD 84-2 Zone 20 Fund 470 |
$56.24 |
|
Information Technology Fund 681 |
$680.79 |
|
Total |
$4,134.27 |
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action involves the promotion of a community renewable energy program to the community and the City’s enrollment in a renewable energy program and there is no possibility that approving the recommended action will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: TOM MOODY, DIRECTOR OF UTILITIES
Attachments:
1. Exhibit 1 - Subscription Agreement
2. Exhibit 2 - MOU