City Council

14.\nClean Energy Savings Plan for Renewable Energy and Supporting Agreements\nRecommendation:\nA. Find that the proposed action is exempt from the California Environmental Quality Act\n(CEQA), in accordance with CEQA Guidelines Section 15061(B)(3), the general rule that\nCEQA only applies to projects that may have a significant effect on the environment; and\nB. Adopt Resolution No. 2026-006 approving and authorizing the City Administrator to (a)\nexecute and deliver those interrelated agreements (Prepay Agreements) to which the City is\na party for participation in a clean energy savings renewable energy transaction, in\nsubstantially the same form as submitted, with such changes as the City Administrator\ndeems necessary or advisable in furtherance of the purposes of this resolution; (b) execute\nand deliver any related documents, such as amendments of any of the Prepay Agreements\nor any agreements necessary to carry out the transactions contemplated by the Prepay\nAgreements; and (c) take such actions as are necessary or advisable to implement and\nadminister the Prepay Agreements.\nThe Prepay Agreements include:\n1. A Limited Assignment Agreement (Antelope DSR—Vernon) (the Antelope DSR LAA)\namong Antelope DSR 1, LLC (Antelope DSR), the Southern California Public Power\nAuthority (SCPPA) and J. Aron & Company (J. Aron), providing for SCPPA to assign certain\nof its rights and obligations to receive and pay for renewable energy and associated\nresources under the Power Purchase Agreement, dated as of July 16, 2015 (the Antelope\nDSR PPA), between Antelope DSR and SCPPA, which rights and obligations relate to the\nPower Sales Agreement, dated as of July 16, 2015, between SCPPA and the City;\n2. A Limited Assignment Agreement (Astoria—Vernon) (the Astoria LAA) among Re Astoria\n2 Solar LLC (Astoria), SCPPA and J. Aron, providing for SCPPA to assign certain of its rights\nand obligations to receive and pay for renewable energy and associated resources under the\nPower Purchase and Sale Agreement, dated as of July 23, 2014 (the Astoria PPA), among\nAstoria, SCPPA, Power and Water Resources Pooling Authority, City of Lodi, City of Corona,\nCity of Moreno Valley and City of Rancho Cucamonga, which rights and obligations relate to\nthe Power Sales Agreement, dated as of July 23, 2014, between SCPPA and the City;\n3. A Limited Assignment Agreement (Daggett—Vernon) (the Daggett Solar LAA) among\nDaggett Solar Power 2 LLC (Daggett Solar), SCPPA and J. Aron, providing for SCPPA to\nassign certain of its rights and obligations to receive and pay for renewable energy and\nassociated resources under the Power Purchase Agreement, dated as of June 24, 2022 (the\nDaggett Solar PPA), between Daggett Solar and SCPPA, which rights and obligations relate\nto the Power Sales Agreement, dated as of June 24, 2022, between SCPPA and the City;\n4. A Limited Assignment Agreement (Desert Harvest—Vernon) (the Desert Harvest LAA)\namong Desert Harvest II LLC (Desert Harvest), SCPPA and J. Aron, providing for SCPPA to\nassign certain of its rights and obligations to receive and pay for renewable energy and\nassociated resources under the Power Purchase Agreement, dated as of December 21,\n2017 (Desert Harvest PPA), between Desert Harvest and SCPPA, which rights and\nobligations relate to the Power Sales Agreement, dated as of December 21, 2017, between\nSCPPA and the City;\n5. A Limited Assignment Agreement (BP Energy—Vernon/SCPPA) (the BP Energy—\nVernon/SCPPA LAA) between the City and SCPPA, assigning to SCPPA certain of the City’s\nrights and obligations to receive and pay for renewable energy credits under the City’s\nConfirmation Letter outlining the general terms and conditions of the agreement between the\nCity and BP Energy Company (BP Energy), whose terms are subject to the WSPP\nAgreement dated October 21, 2024, as amended from time to time (collectively, the BP\nEnergy PPA);\n6. A Limited Assignment Agreement (BP Energy—SCPPA/J. Aron) (the BP Energy—\nSCPPA/J. Aron LAA) and together with the BP Energy—Vernon/SCPPA LAA, the BP Energy\nLAA), among SCPPA, J. Aron, and the City, assigning to J. Aron certain of SCPPA’s rights\nand obligations to receive and pay for renewable energy credits under the BP Energy PPA;\n7. A Clean Energy Purchase Contract (CEPC) with SCPPA by which SCPPA will sell to VPU\nat discounted prices the prepaid renewable energy and associated resources generated by\nthe assigned Antelope DSR PPA, Astoria PPA, Daggett Solar PPA, Desert Harvest PPA, BP\nEnergy PPA (together, the PPAs) for a term of up to 30 years;\n8. A Custodial Agreement with J. Aron and U.S. Bank Trust Company, National Association,\nor selected financial institution as selected by J. Aron, as custodian, for a term equal to the\nCEPC’s term, to establish bank accounts for and administer payments to Antelope DSR,\nAstoria, Daggett Solar, Desert Harvest and BP Energy in satisfaction of performance under\ntheir respective PPAs;\n9. A Project Coordination and Governance Agreement with SCPPA and the three other\nparticipating SCPPA members (Burbank, Colton, and Pasadena) by which SCPPA will\nadminister this project and allocate administrative direct costs associated with the transaction\nto all SCPPA project participants, including Vernon Public Utilities (VPU); and\n10. A Letter Agreement with SCPPA for a term equal to the terms of the Antelope DSR LAA,\nthe Astoria LAA, the Daggett Solar LAA, the Desert Harvest LAA, and the BP Energy LAA\n(together, the “LAAs”), providing that the parties may terminate the LAAs only upon certain\nspecified events, such as termination or suspension of performance under the assigned\nPPAs or suspension or termination of performance under the Clean Energy Purchase\nContract.\nORAL REPORTS