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Ordinance 930ORDINANCE NO. 930 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL APPROVING THE MARIN CLEAN ENERGY JOINT POWERS AGREEMENT AND AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM WHEREAS, the City of Pleasant Hill has been actively investigating options to provide electric services to constituents within its service area with the intent of promoting use of renewable energy and competitive retail choice and reducing energy-related greenhouse gas emissions; and WHEREAS, Assembly Bill (AB) 117 (Stat. 2002, ch. 838 ; see California Public Utilities Code section 366.2 et seq.; hereinafter referred to as the "Act") authorizes any California city or county , whose governing bod y so elects, to combine the electricity load of its residents and businesses in a community-wide electricity aggregation program known as Community Choice Aggregation ("CCA"); and WHEREAS, AB 32 was signed into law in 2006 establishing the goal of reducing the State's greenhouse gas emissions to 1990 levels by 2020; and WHEREAS , the Act expressly authorizes participation in a CCA program through a joint powers agency , and to this end, the City of Pleasant Hill has been evaluating a CCA program through Marin Clean Energy ("M CE"), established as a joint powers authority pursuant to California Government Code § 6500 et seq; and WHEREAS, in February 2, 2010 , the California Public Utilities Commission certified the Implementation Plan of MCE, confirming MCE's compliance with the requirements of the Act; and WHEREAS, electricity in Pleasant Hill is generated and provided by Pacific Gas and Electric (PG&E) and there is not presently an alternative provider in the City . PG&E is currently working to add more renewable energy to its power mix under California's renewable portfolio standard and is on track to have 33 percent renewables by the end of 2020; and WHEREAS, the City of Pleasant Hill is committed to the development of renewable energy generation and energy efficiency improvements , reduction of greenhouse gases , protection of the env ironment, and fully supports MCE's current electricity procurement plan, which targets more than 50% renewable energy content; and WHEREAS , the City of Pleasant Hill finds it important that its residents , businesses , and public fac ilities have alternative choices to energy procurement beyond PG&E; and WHEREAS , the City of Pleasant Hill finds that joining MCE will offer Pleasant Hill customers choice in their power provider and will help the City meet the State goal set out in AB 32 ;and ' WHEREAS , in order to become a member of MCE , the MCE Joint Powers Agreement requires the City to adopt an ordinance electing to implement a CCA program within its jurisdiction by and through its participation in MCE ; and WHEREAS , MCE will govern and operate the CCA program on behalf of the City. The City's participation in MCE will include membership on the Board of Directors as provided in the Joint Powers Agreement; and WHEREAS , MCE will enter into agreements with electric power suppliers and other services providers and , based on these agreements , MCE plans to provide power to residents anct businesses at rates that are competitive with those of the incumbent utility; and WHEREAS, California Public Utilities Code § 366.2 allows customers the right to opt- out of the MCE CCA program and continue to receive service from PG&E. Customers who desire to continue to receive service from PG&E will be able to do so at any time; and WHEREAS , on June 3, 2019 , the City Council held a public meeting at which time interested persons had an opportunity to testify either in support or in opposition to implementation of the MCE CCA program within the City. NOW, THEREFORE, the City Council of the City of Pleasant Hill does ordain as follows: SECTION 1. CEQA. This ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines , as it is not a "project" and has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment because it involves an organizational activity of a local government. 14 Cal. Code Regs. § 15378(a). The ordinance is expressly exempt from CEQA because it is an organizational or administrative activity of governme nts that will not result in direct or indirect physical change in the environment. 14 Cal. Code Regs.§ 15378(b)(5). The ordinance is also exempt from CEQA because it is merely a change in organization of local agencies. 14 Cal. Code Regs . § 15320. Further, the ordinance is exempt from CEQA because there is no possibility that the ordinance or its implementation, which would only result in the formation of a governmental organization, would have a significant negative effect on the environment. 14 Cal. Code Regs. § 15061(b)(3). The City of Pleasant Hill shall cause a Notice of Exemption to be filed as authorized by CEQA and the State CEQA Guidelines . SECTION 2. AUTHORIZATION TO IMPLEMENT A COMMUNITY CHOICE AGGREGATION PROGRAM. Based upon the foregoing, the City hereby elects to implement a CCA program within the jurisdiction of the City by participating in the MCE CCA program, as described in the MCE Joint Powers Agreement (Exhi bit 1), and authorizes the City Manager, or desi gnee , to execute the Joint Powers Agreement. SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause , phrase or portion of this ordinance is held for any reason to be invalid or unconstitutional by a decision of any court of competent jurisdiction , such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, clause , phrase or portion thereof, irrespective of the fact that any one or more sections, subsections , sentences , clauses , phrases or portions be declared invalid or unconstitutional. SECTION 4. EFFECTIVE DATE. This ordinance shall take effect 30 days after its adoption. Within fifteen days after the passage of this ordinance, the City Clerk shall cause it or a summary of it to be posted in the three places designated by resolution of the City Council. The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Pleasant Hill held on the 3rd day of June , 2019. ADOPTED and ordered posted at a meeting of the City Council of the City of Pleasant Hill , held on the 17th day of June, 2019 , by the following vote : AYES: NOES : ABSENT : ABSTAIN : RECUSE: ATTEST: Flaherty, Harris, Rinn , Carlson None None None Noack ~~~()-4_~ CAROL WU, City Clerk STOFORM; ?-- JA