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Upfront: Clean energy powers ahead
Novato only city that hasn't thrown on the switch to Joint Powers Authority...

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The Marin Energy Authority is a done deal. But proponents of forming a county environmental energy agency continue their call for a march toward a clean-energy future in Marin.

A new Joint Powers Authority (JPA), the Marin Energy Authority, has been formed by a vote of city councils and county supervisors. But not all governmental entities are totally on board yet.

The next big vote comes Dec. 15, when the San Rafael City Council will take up the issue. On Dec. 1, in the first reading of the joint powers ordinance, council members Greg Brockbank, Damon Connolly and Barbara Heller gave the ordinance a nod. Mayor Al Boro recused himself because he has investments in PG&E. The only vote in opposition to joining the joint powers authority came from Cyr Miller, who said he wanted the city manager to work with PG&E on the company's long-proposed clean energy partnership with Marin County. Some say the partnership is more phantom than serious proposal.

The council members who voted to join the JPA said PG&E is fully capable of working on its partnership proposal without the help of city staff. They noted that the utility company has said for more than a year that it's serious about proposing a clean-energy solution for Marin but has so far shown little inclination to reveal specifics, at least enough for Marin cities and the county to assess the value of a PG&E proposal. That sentiment echoes the thoughts of county supervisors who, in late November unanimously signed on to the clean-energy JPA.

Women's Energy Matters, a grassroots nonprofit, has been urging cities to join the clean-energy march. The group has played a significant role in disseminating education about the clean-energy proposal as the ordinance makes the rounds of city councils across the county.

Barbara George, founder of the organization, is a ratepayer advocate at the California Public Utilities Commission, a spot she has held since 2001. She specializes in issues concerning energy efficiency and power procurement, key elements in the proposal to create a clean-energy agency in Marin.

Councilmember Miller said he believes the tough economic conditions cities are navigating is sufficient reason to forego joining a new clean-energy venture. But George and other clean-energy advocates counter that forming a Marin clean-energy agency could be a big boost to the local economies, including San Rafael.

Novato has not yet voted on the joint powers ordinance, and many clean-energy and sustainability advocates are wondering what's holding up the process there. Concerns that mirror those Miller expressed in San Rafael play a part in Novato's hesitation. And no one denies that this would be a major step into new territory. But, say advocates, it's a step that carries no risk in the early stages. And it's not entirely new--it is working successfully in Massachusetts and Ohio.

Voting to join the JPA doesn't obligate a town or city to participate in a local-power plan, but it does allow towns and cities to participate in the early planning process that could pave the way toward a clean-energy future for the county—-and help the county and cities meet a state mandate to reduce greenhouse gas emissions.

Voting to join "will cost the city nothing," John Schlag wrote in a letter to the Novato City Council. Schlag is president of Sustainable Novato. While joining the joint powers authority would carry no risk, Schlag continued, it would enable "Novato to have a voice in issuing a request for proposals to potential green electricity providers."

As proponents of a clean-energy agency (known as Marin Clean Energy) repeatedly stress, "off-ramps" all through the process will allow safe exit from a plan should reality not meet expectations. After choosing a service provider, the new energy agency will negotiate a contract, subject to a 90-day review. Each member of the JPA will have a chance to vote whether to proceed with the contract. If members like what they see, it's expected that the new energy agency would sign a final agreement with an energy provider next year.

Novato should at least join with the other cities that have become JPA members "to the point of letting bids out to see what the market tells us," says Ed Mainland of Sustainable Novato. "There's no risk to get to that point, so the city of Novato has nothing to lose."

Mainland and other clean-energy advocates say that using the current economic meltdown as a reason to reject a clean-energy plan is a false argument. The meltdown actually is an incentive, albeit a depressing one.

Advocates of the clean-energy plan estimate that a Marin clean-energy agency could provide 25 percent of Marin's electricity from renewable sources by 2010 at the same rate that PG&E charges. The goal is to increase that percentage so energy consumers would receive 50 percent of their electricity from green sources at the same price that PG&E charges. Customers also could opt for a 100 percent green option for a surcharge on their bills. Estimates for the surcharge range between $10 and $15 a month.

Creating the energy agency and buying the green power would "be a ready-made way to comply with AB 32," says Mainland. That law, enacted in 2006, is a state mandate that requires the California Air Resources Board to develop regulations that will reduce greenhouse gas emissions to 1990 levels by 2020. Governments, counties and cities, are on the hook to meet that target. As Woody Guthrie might sing, "How can cash-strapped cities and counties and cities meet that target in such times as these?"

In a staff report regarding AB 32, Alex Hinds, former head of the County Community Development Agency, estimated that an overall greenhouse gas reduction of 30 percent "may be needed to meet the state mandate. Countywide, this is the equivalent to a reduction of 955,500 tons of CO2."

If instead of reducing emissions, the county and its cities and towns could buy offsets, credits from other entities that reduce emissions more than required, it would cost a bundle. In his report, Hinds wrote carbon offsets on the Chicago Climate Exchange cost $4 per ton. The math in Marin is daunting: $4 a ton times a reduction of 955,500 tons.

The promise of economic benefits accruing from a clean-energy future would extend beyond the money saved in meeting AB 32, say advocates of a clean energy authority.

"There would be a new revenue stream," says Mainland, "and it's a way to fund many of the sustainability energy initiatives that the Novato City Council professes to be for but says the city can't afford. We recognize that all cities are in dire straits right now. But that's all the more reason why it would be bizarre to pass up this opportunity."

Whether or not Novato joins the JPA, it's a done deal, says Dawn Weisz, principal planner with the county who specializes in sustainability issues. Sausalito, Tiburon, Fairfax, Mill Valley and the county all have joined the joint powers authority. Four other cities, including San Rafael, have held their first readings of the ordinance and are expected to formally approve their membership in the joint powers authority. If each city that has held a first reading re-affirms the positive position in a second reading, the new Marin Power Authority will have 70 percent of the energy load in Marin, according to Weisz.

The JPA officially began operating on Dec. 19. The ordinance that created the agency allows cities to sign on to the agreement without consequence up to 180 days after that formation date.

The requirements associated with AB 32 are becoming more distinct, sharper-edged. This month the California Air Resources Board is finishing its AB 32 scoping plan. A section of that plan concerns the responsibilities of local governments.

Creating a working and successful green-energy agency in Marin would "in one fell swoop" allow Novato to comply with AB 32, Mainland says. That reasoning has been a major spur to county and the cities that already have signed on.

The process of moving toward a clean-energy future in Marin began in 2002 with AB 117, a law sponsored by then Assemblywoman Carole Migden. It paved the way for "community choice aggregation," which allows communities to buy power from whatever provider they choose--including providers with renewable power--and then deliver it through the existing power grid, which in this case is the bailiwick of PG&E. Marin supervisors have been investigating the possibilities of AB 117 for Marin since its passage.

That long planning time is a ready-made counter to the argument that the clean-energy plan is too complicated to become a reality in a complex marketplace. After all those years of planning, and receiving positive reports from consultants, proponents are optimistic that the clean-energy agency will receive good news and competitive estimates when it sends out requests for proposals to energy providers.

PG&E will be on the list. The utility company is welcome to submit competitive bids. That puts the company in an unusual position in Marin, but it's an unusual position that PG&E already has contorted itself into across the state.

After the legislation that paved the way for local power agencies, the utility began pushing back, most notable in the San Joaquin Valley, where cities wanted to form a local power agency. PG&E mounted an aggressive advertising campaign designed to get cities to balk at becoming members. It worked to an extent, but the company's strategy failed to prevent creation of the San Joaquin Power Authority. The tactic led to a lawsuit over the company's marketing tactics, which PG&E eventually settled with the San Joaquin agency.

In Marin, the utility company spent the better part of year arguing that a Marin clean-energy agency could never meet the promise of clean energy at competitive rates. Then, late in the game, PG&E said it was willing to form a partnership in Marin to supply clean energy to customers in the county. Few details ensued.

Advocates of forming a JPA said the company should wait and submit any proposal to the new Marin Power Authority. But the company kept up the pressure at the many public meetings and workshops that have been held to educate the public about the clean-energy proposal. (Sixty public hearings have been held since July 1, says Weisz.)

Two prominent locally connected consultants, former Marin Supervisor Gary Giacomini and former Assemblyman Joe Nation, went to bat for the utility company, selling its partnership proposal. But details have remained too sparse.

While the details of the PG&E proposal might be a little too few for Marin clean-energy advocates, the utility company has said it will go before the state PUC in June or July of next year for approval of a partnership program with Marin. The company earlier had said it would go to the Utilities Commission no later than Jan. 1, 2009.

The company needs that approval before it can begin any partnership program with Marin. And the PUC has another interesting requirement: PG&E must say that the partnership program it proposes for Marin will be available throughout its service territory. The company cannot offer something in Marin that it will withhold elsewhere. No special perks for Marin. Lacking that stipulation, the utility company can say the Marin program is a pilot project that will run for a year or two, and then be available throughout its service area. From combative to cooperative, the road PG&E has traveled has not been a straight line.

Proponents of Marin Energy Authority say the utility company cannot meet, and does not want to meet, key requirements of a Marin clean-power agency: the ability to control rates, control energy acquisition sources, stimulate a local green economy; in other words, a heaping helping of local control.

When the energy crisis hit the state in 2000, the event triggered the start of local-power efforts. It was the investor-owned utility companies, including PG&E, that hit the skids as victims of rampant speculation. Municipal utilities, which supply about 25 percent of the power in California, escaped the speculation meltdown in the energy market.

"Sometimes government is a safer bet," says Weisz.

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Comments

Posted by Peter Waring, a resident of the Fairfax neighborhood, on Dec 11, 2008 at 11:33 pm

Peter Seidman is to be commended on writing a good summary of the progress toward Marin Clean Energy. However, many of us who attended the San Rafael City Council meeting on 12/1 came away perplexed and dismayed by Vice Mayor Cyr Miller's eleventh hour "twist" which would have the effect of stopping San Rafael's participation in MCE dead in its tracks until 3/31/09 by which time he hopes to get definitive clarification of PG&E's vague partnership proposal. If at the second reading on 12/15, Councilwoman Barbara Heller decides that her doubts warrant similar caution and switched from a "Yea" to a "Nay" vote, then it would be 2-to-2, and the measure would fail to pass. This doesn't feel like a "done deal". It feels like a serious threat of backslide away from urgently needed action to keep our environment and our economy from dropping deeper in the hole. San Rafael and Novato, because of their far greater customer base, are key players whose participation is critical to leverage sufficiently low bids from clean energy providers to make the whole plan succeed. And success for MCE and the JPA is necessary to open the door to many other vital programs, such as making use of the AB811 funds for home energy efficiency upgrades which will stimulate our local economy creating green jobs. Local initiative will attract State and Federal support to keep Marin and California at the leading edge of sustainability. Failure to unite around MCE would compromise many of the changes we have dared to believe in and worked hard for many months to attain.

Peter Waring, Green Building & Energy Consultant, Fairfax


Posted by Sea, a resident of another community, on Dec 14, 2008 at 11:46 am

Really Peter Waring? So refreshing to know that the Vice Mayor is giving real thought to the issue, good for him. You and others seem to only hear the double talk, and buzz words. You, in part call yourself a energy consultant. It appears to me that you have completely discounted the nuts and bolts part of this problem.

I have simple questions that I have posted many times, and never once was there an answer to one. Maybe you can answer Mr. energy consultant? 1. Why do all of you act as if PE&E does'nt exist?

They own it all in Marin. Generating and delivery.

They will be big player for years to come

2. How does one know if they are receiving green power

or dirty power. It will be delivered on the same

line. Strict accounting you say?

3. What would stop PG&E from assessing a surecharge to

deliver from a private generating facility?

4. Why isn't anyone talking about conservation?

5. Personally I have not seen that many green

generating facilities in or near Marin. Clearly no

would want one in their back yard. Put them far away

Did mention delivery system?

6. Do people really understand the energy it takes to

produce electricity? Clearly not.

7. Why don't you all see this for what it is, clear and

simple. Deregulation.

8. In your scenario, as these green plants come on line

who will pick up the shortage at peak use periods?

Mixing dirty with green.

I do believe in sustainability, and I am not a big fan of PG&E. I also believe this is no simple task as outlined by MCE. At this moment the Berkeley approach makes much more sense. Much more localized and happening now.


Posted by Evan, a resident of the San Rafael neighborhood, on Dec 15, 2008 at 9:00 am

I'm not an expert on this, but here are my responses about why I think it makes sense to move ahead. There are plenty of questions, but no entity is making a commitment to move ahead with the full project until bids come back sometime next summer. Also, if Marin pulls this off, it will be a model for the rest of the state and eventually rest of the country. The ripple from what we do could be very important for our nation's energy future.

1. Yes. And they are consistently behind the curve when it comes to conservation and green energy. They have to be pushed by government or some other force. This is another example. All the more reason to intervene. We can't leave it up to PG&E.

2. Is this a reason not to try it? Because you don't know doesn't mean it's not possible

3. Regulators. (Yes, that's asking for some faith in the PUC, which is currently in the pocket of large utilities, but we can hope the legislature, which supports green power, would intervene if PG&E and the PUC don't do the right thing.

4. Good point. It's important and should be part of the JPA plan if possible.

5. They don't have to be big plants. The new entity could help provide loans or liens (similar to Berkeley) for individuals putting solar systems on their houses.

6. Huh? What's this have to do with it? And isn't any renewable contribution better than none? We do what we can which is could be significant and certainly better than nothing.

7. This one I really don't get. How is providing renewable power from a publicly owned entity deregulation? Deregulation is what got us the current utility monopoly dominant system we have.


Posted by Sea, a resident of another community, on Dec 15, 2008 at 10:35 am

Thanks for your reply Evan. I suggest you do alittle more home work on this subject. Your answers are based on emotion not fact or logic. My point is that most do not understand the mechanical part to this problem, just the hoopla.


Posted by Evan, a resident of the San Rafael neighborhood, on Dec 16, 2008 at 1:10 pm

Most do not understand the "mechanical part" of how PG&E provides energy now either. Technical understanding is helpful, but why would I trust PG&E with its record vs. our local governments who have studied this and think it is feasible? We do know that PG&E has not been honest with communities where it has operated (Erin Brockavich) and has had to be pushed to pursue alternative energy sources by state legislation. We will know more about the feasibility when the bids come back.


Posted by Sea, a resident of another community, on Dec 16, 2008 at 2:42 pm

Evan, best of luck to you and the MCE. I will continue to be negative until I hear someone address the technical issues. Something you believe to be just helpful. Emotion, notion, and assumption will never work.


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