| 20260217 |
LA County |
Vernon |
City Council |
Item |
11.
Clean Energy Savings Plan for Renewable Energy and Supporting Agreements
Recommendation:
A. Find that the proposed action is a purely administrative and financial transaction that
would not cause either a direct physical change in the environment or a reasonably
foreseeable indirect physical change in the environment, and therefore is not a “project” as
defined in Section 21065 of the California Environmental Quality Act (CEQA) Guidelines and
such activity is not subject to CEQA under Section 15060(c)(2) and (c)(3) and Section
15378;
B. Adopt Resolution No. 2026-006 approving and authorizing the City Administrator to
execute those interrelated agreements (Prepay Agreements) to which the City is a party, in
substantially the same form as submitted, with such changes as the City Administrator
deems necessary or advisable in furtherance of the purposes of this resolution, for
participation in a clean energy savings renewable energy transaction that will create a
discount for the City of Vernon (City) in its purchase of certain renewable energy including:
1. A Limited Assignment Agreement (Antelope DSR—Vernon) (the Antelope DSR LAA)
among Antelope DSR 1, LLC (Antelope DSR), the Southern California Public Power
Authority (SCPPA) and J. Aron & Company (J. Aron), providing for SCPPA to assign certain
of its rights and obligations to receive and pay for renewable energy and associated
resources under the Power Purchase Agreement, dated as of July 16, 2015 (the Antelope
DSR PPA), between Antelope DSR and SCPPA, which rights and obligations relate to the
Power Sales Agreement, dated as of July 16, 2015, between SCPPA and the City;
2. A Limited Assignment Agreement (Astoria—Vernon) (the Astoria LAA) among Re Astoria
2 Solar LLC (Astoria), SCPPA and J. Aron, providing for SCPPA to assign certain of its rights
and obligations to receive and pay for renewable energy and associated resources under the
Power Purchase and Sale Agreement, dated as of July 23, 2014 (the Astoria PPA), among
Astoria, SCPPA, Power and Water Resources Pooling Authority, City of Lodi, City of Corona,
City of Moreno Valley and City of Rancho Cucamonga, which rights and obligations relate to
the Power Sales Agreement, dated as of July 23, 2014, between SCPPA and the City;
3. A Limited Assignment Agreement (Daggett—Vernon) (the Daggett Solar LAA) among
Daggett Solar Power 2 LLC (Daggett Solar), SCPPA and J. Aron, providing for SCPPA to
assign certain of its rights and obligations to receive and pay for renewable energy and
associated resources under the Power Purchase Agreement, dated as of June 24, 2022 (the
Daggett Solar PPA), between Daggett Solar and SCPPA, which rights and obligations relate
to the Power Sales Agreement, dated as of June 24, 2022, between SCPPA and the City;
4. A Limited Assignment Agreement (Desert Harvest—Vernon) (the Desert Harvest LAA)
among Desert Harvest II LLC (Desert Harvest), SCPPA and J. Aron, providing for SCPPA to
assign certain of its rights and obligations to receive and pay for renewable energy and
associated resources under the Power Purchase Agreement, dated as of December 21,
2017 (Desert Harvest PPA), between Desert Harvest and SCPPA, which rights and
obligations relate to the Power Sales Agreement, dated as of December 21, 2017, between
SCPPA and the City;
5. A Limited Assignment Agreement (BP Energy—Vernon/SCPPA) (the BP Energy—
Vernon/SCPPA LAA) between the City and SCPPA, assigning to SCPPA certain of the City’s
rights and obligations to receive and pay for renewable energy credits under the City’s
Confirmation Letter outlining the general terms and conditions of the agreement between the
City and BP Energy Company (BP Energy), whose terms are subject to the WSPP
Agreement dated October 21, 2024, as amended from time to time (collectively, the BP
Energy PPA);
6. A Limited Assignment Agreement (BP Energy—SCPPA/J. Aron) (the BP Energy—
SCPPA/J. Aron LAA) and together with the BP Energy—Vernon/SCPPA LAA, the BP Energy
LAA), among SCPPA, J. Aron, and the City, assigning to J. Aron certain of SCPPA’s rights
and obligations to receive and pay for renewable energy credits under the BP Energy PPA;
7. A Clean Energy Purchase Contract (CEPC) with SCPPA by which SCPPA will sell to VPU
at discounted prices the prepaid renewable energy and associated resources generated by
the assigned Antelope DSR PPA, Astoria PPA, Daggett Solar PPA, Desert Harvest PPA, BP
Energy PPA (together, the PPAs) for a term of up to 30 years;
8. A Custodial Agreement with J. Aron and U.S. Bank Trust Company, National Association,
or selected financial institution as selected by J. Aron, as custodian, for a term equal to the
CEPC’s term, to establish bank accounts for and administer payments to Antelope DSR,
Astoria, Daggett Solar, Desert Harvest and BP Energy in satisfaction of performance under
their respective PPAs;
9. A Project Coordination and Governance Agreement with SCPPA and the three other
participating SCPPA members (Burbank, Colton, and Pasadena) by which SCPPA will
administer this project and allocate administrative direct costs associated with the transaction
to all SCPPA project participants, including Vernon Public Utilities;
10. A Letter Agreement with SCPPA for a term equal to the terms of the Antelope DSR LAA,
the Astoria LAA, the Daggett Solar LAA, the Desert Harvest LAA, and the BP Energy LAA
(together, the “LAAs”), providing that the parties may terminate the LAAs only upon certain
specified events, such as termination or suspension of performance under the assigned
PPAs or suspension or termination of performance under the Clean Energy Purchase
Contract; and
C. Approve and authorize the City Administrator to (a) execute and deliver the Prepay
Agreements in substantially the forms presented to City Council, with such changes as the
City Administrator deems necessary or advisable in furtherance of the purposes of this
resolution; (b) execute and deliver any related documents, such as amendments of any of
the Prepay Agreements or any agreements necessary to carry out the transactions
contemplated by the Prepay Agreements; and (c) take such actions as are necessary or
advisable to implement and administer the Prepay Agreements. |
February 17, 2026
LA County
Vernon
City Council
Item
#11
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