REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Establishing Silicon Valley Power (SVP) Large Customer Renewable Energy (LCRE) Program - A Voluntary Program for Large Customers to Purchase Additional Renewable Energy Above the Amount of Renewable Energy Already Required in SVP's Energy Delivery Portfolio
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara's electric utility, Silicon Valley Power (SVP) maintains a portfolio of energy supplies that collectively assure economic and reliable electric service to all customers. Per Senate Bill 100, SVP has an escalating annual Renewable Portfolio Standard (RPS) compliance requirement to add California eligible renewable energy (RE) as a percentage of the retail sales mix. The current requirement for compliance year 2021 is 36 percent, escalating to 60 percent in 2030 and beyond.
Since 2004, SVP has offered the voluntary Santa Clara Green Power (SCGP) program to residential and commercial customers who want to offset their electric usage with 100 percent renewable energy credits (RECs). The SCGP program relies on the use of independently validated Green-e qualified RECs that are separate or unbundled from the energy delivered and do not impact California green-house gas (GHG) emissions reduction goals. SVP is retiring the residential SCGP program at the end of the calendar year 2021.
In recent years, SVP received inquiries from a number of large customers (as defined below) that wish either for SVP to provide additional RE, or for customers to provide their own additional RE. Customers were losing interest in unbundled REC offsets from the SCGP and preferred a RE product that was directly tied to emissions reductions in California. This additional RE would be generated from specified eligible renewable projects in California or delivered into California - a bundled RE product to meet the customer's higher corporate renewable a...
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