HomeMy WebLinkAboutTC Res 2010-01-20 (2)RESOLUTION NO. 07- 2010
RESOLUTION OF THE TOWN COUNCIL OF THE
TOWN OF TIBURON
OPPOSING THE PROPOSED CALIFORNIA CONSTITUTIONAL AMENDMENT
BALLOT INITIATIVE ENTITLED "NEW TWO-THIRDS VOTE REQUIREMENT FOR
LOCAL PUBLIC ELECTRICITY PROVIDERS"
WHEREAS, in 1997 the State of California deregulated the electricity market with the
intent to give consumers a choice in electricity providers, ending decades of monopolized
electricity markets; and
WHEREAS, deregulation promised lower rates and better service through increased
competition; and
WHEREAS, the deregulation of the electricity market led to market manipulation by
some investor-owned electricity providers which later admitted to fraudulent behavior. A direct
result of that market manipulation was the energy crisis of 2000-2001; and
WHEREAS, in 2001, the State of California rescinded deregulation, returning most
ratepayers to the same monopolistic electricity providers that they had prior to deregulation,
resulting in the loss of free-market competition and consumer choice; and
WHEREAS, in 2002, in response to the collapse of deregulation and its failure to
provide electricity consumers with a choice of electricity providers, Assemblywoman Carole
Migden authored, and the California Legislation passed, Assembly Bill 117, enabling
communities to establish Community Choice Aggregation programs; and
WHEREAS, Community Choice Aggregation enables any city or county or combination
thereof to purchase electricity on behalf of its residences and businesses, and can require and
obtain a higher percentage of renewable energy in its energy portfolio than that provided by
investor-owned utility; and
WHEREAS, Community Choice Aggregation offers Californians the opportunity to
choose their electricity provider and obtain electricity that is qualified as renewable energy, as
established by the California Energy Commission; and
WHEREAS, Community Choice Aggregation gives authority to participating local
governments to issue municipal revenue bonds to build publicly-owned, renewable energy
resources to supply electricity to their residents, thereby playing an important role in California's
greenhouse gas reduction target as mandated in Assembly Bill 32, California's Global Warming
Solutions Act; and
WHEREAS, all debt obligations incurred by Community Choice Aggregators are
payable with the electricity revenue of participating customers, and not the general funds of any
of the participating cities or counties; and
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WHEREAS, Community Choice Aggregation programs are mandated under law to
provide electricity users in their service territory with a minimum of four opportunities to opt out
of service provision by the Aggregator and instead continue to receive service from the
incumbent utility; and
WHEREAS, Community Choice Aggregation programs are certified by the California
Public Utilities Commission and must comply with basic requirements for supply security,
thereby ensuring public confidence in the program; and
WHEREAS, Pacific Gas & Electricity, the incumbent utility for Marin County, initially
supported AB 117, and is required under the provisions of AB 117 to fully cooperate with
Community Choice Aggregators, and has a stated commitment to renewable energy, energy
efficiency and climate protection; and
WHEREAS, Pacific Gas & Electricity has in recent years become an opponent of
Community Choice Aggregation, and is the sole major donor to the ballot initiative campaign
entitled "New Two-Thirds Vote Requirement for Local Public Electricity Providers"; and
WHEREAS, in 2008, the County of Marin and eight of the cities within the County
formed a Joint Powers Authority known as the Marin Energy Authority, the mission of which is
to address the greenhouse gas reduction targets put forth in Assembly Bill, and committed to a
greenhouse gas reduction target of 25% below 1990 levels by the year 2015; and
WHEREAS, Marin's Climate Action Plan identifies Community Choice Aggregation as
a financing and governance mechanism that offers potentially powerful tools for achieving the
County's greenhouse gas reduction target as well as for creating local `green' jobs and increasing
energy independence, and recommends further exploration of Community Choice Aggregation;
and
WHEREAS, on May 28, 2009, a request for title and summary was made to the
California Attorney General for an initiative to amend the California Constitution, entitled "New
Two-Thirds Vote Requirement for Local Public Electricity Providers," which would be placed
on the June 3, 2010 ballot if sufficient signatures are collected, and a copy of which is attached
hereto and incorporated by this reference; and
WHEREAS, The "New Two-Thirds Vote Requirement for Local Public Electricity
Providers" adds unreasonable hurdles for California cities and counties to overcome in order to
become aggregate purchasers of electricity; and
WHEREAS, The "New Two-Thirds Vote Requirement for Local Public Electricity
Providers" would require submitting any Community Choice Aggregation proposal to the voters
within the proposed jurisdiction of an aggregator for a two-thirds vote of approval; and
WHEREAS, The "New Two-Thirds Vote Requirement for Local Public Electricity
Providers" would effectively preclude any entity from becoming an electricity aggregator as well
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as virtually prohibiting any existing Municipal utility, all of whom operate on non-profit, public
interest basis, from entering into any new competitive market in California; and now, therefore,
NOW, THEREFORE, BE IT RESOLVED, that the Town Council of the Town of
Tiburon fully supports maintaining the consumer's right to choose energy from clean, renewable
sources as provided for under the Community Choice Aggregation law; and
BE IT FURTHER RESOLVED, that the Town Council of the Town of Tiburon
strongly opposes "New Two-Thirds Vote Requirement for Local Public Electricity Providers" as
being against the interest of California's electricity ratepayers, against the public interest, and a
potential setback for renewable energy production; and
BE IT FURTHER RESOLVED, that the Town Council of the Town of Tiburon
strongly urges other Community Choice Aggregation programs, cities, counties, special districts
and Local Agency Formation Commissions to adopt similar resolutions opposing the "New Two-
Thirds Vote Requirement for Local Public Electricity Providers"; and
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Tiburon on this 20th day of January 2010, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Collins, Fraser, Fredericks, O'Donnell, Slavitz
None
None
RICHARD COLLINS, MAYOR
TOWN OF TIBURON
ATTE,ST:_)
DIANE CRANE IACOPI, TOWN CLERK
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