REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute the First Amendment to Central Valley Project Corporation Membership Agreement to Extend the Term for Ten Years
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
Promote Sustainability and Environmental Protection
BACKGROUND
In 2003, the City Council approved the Central Valley Project Corporation Membership Agreement (Agreement) and delegated authority to the City Manager to execute exhibits to the Agreement on behalf of the City of Santa Clara in order to participate in specific voluntary programs. Prior to 2003, the Northern California Power Agency (NCPA) and its members, including the City of Santa Clara, did not have a nimble way to respond to funding needs related to the Central Valley Project (CVP). The CVP is a large federal and water management project which generates carbon-free energy (Base Resource) from its hydroelectric projects in addition to other benefits. Santa Clara receives power from this Base Resource. The NCPA Commission, at its September 26, 2002, meeting, directed NCPA staff to establish the Central Valley Project Corporation (CVP Corp) with the goal of protecting, and if possible, enhancing the benefits of CVP power contracts for its constituent members. Today, the CVP Corp has 24 members, including both NCPA and non-NCPA members.
Since 2003, CVP Corp established several programs, including 1) the Restoration Fund Financing, 2) the Energy Exchange Arrangement for Project Use and First Preference Support, and 3) the Base Resource Displacement Program. While the first two programs have since been terminated due to lack of need, CVP Corp's current sole activity is the Base Resource Displacement Program. This program allows Base Resource customers in the California Independent System Operator (CAISO) balancing area to exchange energy with other Base Resource customers outside of the CAISO grid balancing area i...
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