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Home My WebLink About09 - Resolution in Support of Balanced Energy Solutions and Local ControlQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report February 11, 2020 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Mark Vukojevic, Utilities Director, mvukojevic@newportbeachca.gov PHONE: 949-644-3011 TITLE: Resolution No. 2020-16: Resolution in Support of Balanced Energy Solutions and Local Control ABSTRACT: At the January 14, 2020 City Council meeting, Council Member Muldoon requested a resolution be brought forward supporting balanced energy solutions, promoting and protecting consumer energy choice and retaining local City control with respect to energy sources and delivery systems. One hundred and sixteen California cities and counties have supported similar resolutions in their respective jurisdictions. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2020-16, A Resolution of the City Council of the City of Newport Beach, California, Supporting Balanced Energy Solutions and Maintaining Local Control of Energy Solutions. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. DISCUSSION: Recent signed and draft legislation, policies and regulations from Sacramento express a desire to eliminate non-renewable energy sources over time such as natural gas as a way to meet California's clean energy goals (there are currently no mandates). Residential, commercial and City properties in Newport Beach and throughout California typically have access to both electricity and natural gas (generated from a variety of sources). Existence of diverse energy sources such as electricity and natural gas helps users with cost control as well as provide for overall system reliability. Without a variety of energy sources, or if mandated by the State, residents, businesses and the City may be required to choose solely among specific types of energy sources for their properties. 9-1 Resolution No. 2020-16: Resolution in Support of Balanced Energy Solutions and Local Control February 11, 2020 Page 2 One hundred and sixteen California cities and counties have supported similar resolutions communicating their desire to protect continued choice in their preferred energy solutions for their properties. Further information regarding the resolutions signed by other agencies can be found at the following website: https://www.socalgas.com/vision/balanced-energy-resolutions. The proposed resolution does not take a position for or against electrification or natural gas use. Rather, it reinforces how the City values local control and supports balanced energy solutions that promote and protect consumer energy choices. Relying on a single energy solution unnecessarily increases vulnerabilities to disasters and a diversity of energy systems and resources contribute to greater reliability and community resilience. Similar to the Legislative Platform adopted on November 5, 2019, the attached resolution will serve as the basis for the City to support or oppose legislation or new policies. It is a useful tool for the City Council and staff as we may need to respond quickly regarding the City's position on legislative matters and pursue resources and protections for Newport Beach. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Resolution No. 2020-16 9-2 ATTACHMENT A RESOLUTION NO. 2020-16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, SUPPORTING BALANCED ENERGY SOLUTIONS AND MAINTAINING LOCAL CONTROL OF ENERGY SOLUTIONS WHEREAS, the state legislature and state agencies are increasingly proposing new legislation and regulations eliminating choice of energy by mandating technologies to power buildings and public and private fleets, including transit and long-haul trucking, as a strategy to achieve the state's climate goals; WHEREAS, clean, affordable and reliable energy is crucial to the material health, safety and well-being of City of Newport Beach ("City") residents; WHEREAS, the need for clean, affordable and reliable energy to attract and retain local businesses, create jobs and spur economic development, which is vital to the City's success in a highly competitive and increasingly regional and global marketplace; WHEREAS, the City's residents and businesses value local control and the right to choose the policies and investments that most affordably and efficiently enable them to comply with state requirements; WHEREAS, building and vehicle technology mandates eliminate local control and customer choice, suppress innovation, reduce reliability and unnecessarily increase costs for City's residents and businesses; and WHEREAS, the City understands that relying on a single energy delivery system unnecessarily increases vulnerabilities to natural and man-made disasters, and that a diversity of energy delivery systems and resources contribute to greater reliability and community resilience. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby support diverse and balanced energy solutions that provide it with decision-making authority, and opposes proposed state legislation and policies that eliminate local control. Section 2: The City Council does hereby support state proposals and regulations that retain local control with respect to energy sources and delivery systems. 9-3 Resolution No. 2020 - Page 2 of 2 Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 11th day of February, 2020. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE C�. Aaron C. Harp City Attorney