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Ord 2250 - Implementation of a Community Choice Aggregation (CCA) ProgramORDINANCE 2250 ORDINANCE OF THE TOWN OF LOS GATOS AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION (CCA) PROGRAM The Town Council of the Town of Los Gatos does ordain: SECTION 1. FINDINGS. The Town Council finds as follows: 1. The Cities of Cupertino, Mountain View and Sunnyvale and the County of Santa Clara formed and sponsored the Silicon Valley Community Choice Energy Partnership (SVCCEP) to investigate options to provide electric service to customers within the Town of Los Gatos and surrounding municipalities with the intent of achieving greater local control and involvement over the provision of electric services, competitive electric rates, the development of local renewable energy projects, reduced greenhouse gas emissions, and the implementation of energy conservation and efficiency projects and programs. 2. The Town of Los Gatos intends to join the SVCCEP and, through exploring participation in SVCCEP, has prepared a Technical Feasibility Study for a Community Choice Aggregation ( "CCA "), also known locally as Community Choice Energy (CCE), program under the provisions of Public Utilities Code Section 366.2. The Technical Feasibility Study shows that implementing a community choice aggregation program would likely provide multiple benefits, including the following: a. Providing customers a choice of power providers; b. Increasing local control over energy rates and other energy - related matters; c. Providing electric rates that are competitive with those provided by the incumbent utility; d. Reducing greenhouse gas emissions arising from electricity use in the Town; e. Increasing local and regional renewable generation capacity; f Increasing energy conservation and efficiency projects and programs; g. Increasing regional energy self - sufficiency; and h. Improving the local economy by implementing new local renewable and energy conservation and efficiency projects. 1 of 3 Ordinance 2260 February 16, 2016 3. The Joint Powers Agreement creating the Silicon Valley Clean Energy Authority ( "Authority ") will govern and operate the CCA program on behalf of its member jurisdictions. The Initial Participants within the County of Santa Clara, as defined by the Joint Powers Agreement, may participate in the Authority by adoption of a resolution approving the execution of the Joint Powers Agreement and adoption of the CCA ordinance required by Public Utilities Code Section 366.2(c)(12) by March 31, 2016. Municipalities choosing to participate in the Authority will have membership on the Board of Directors of the Authority as provided in the Joint Powers Agreement. 4. The Authority will enter into agreements with electric power suppliers and other service providers and, based upon those agreements, the Authority plans to provide electrical power to residents and businesses at rates that are competitive with those of the incumbent utility. Once the California Public Utilities Commission approves the implementation plan prepared by the Authority, the Authority may provide service to customers within the Town of Los Gatos and those cities that choose to participate in the Silicon Valley Clean Energy Authority; and 5. Under Public Utilities Code Section 366.2, customers have the right to opt -out of a CCA program and continue to receive service from the incumbent utility. Customers who wish to continue to receive service from the incumbent utility will be able to do so at any time; and 6. On January 19, 2016, the Los Gatos Town Council held a public hearing at which time interested persons had an opportunity to testify either in support or in opposition to implementation of the Silicon Valley Clean Energy CCA program in the Town of Los Gatos. 7. This ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the 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. (14 Cal. Code Regs. § 15378(a).) Further, the ordinance is exempt from CEQA as there is no possibility that the ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs.§ 15061(b)(3).) The ordinance is also categorically exempt because it is an action taken by a regulatory agency to assure the maintenance, restoration, enhancement or protection of the 2of3 Ordinance 2250 February 16, 2016 environment. (14 Cal. Code Regs. § 15308.) The Director of Public Works shall cause a Notice of Exemption to be filed as authorized by CEQA and the State CEQA Guidelines. SECTION 2. The above findings are true and correct. SECTION 3. AUTHORIZATION• TO IMPLEMENT A COMMUNITY CHOICE AGGREGATION PROGRAM. Based upon the foregoing, and in order to provide businesses and residents within the Town of Los Gatos with a choice of power providers, the Town of Los Gatos hereby elects to implement a community choice aggregation program within the jurisdiction of the Town by participating in the Community Choice Aggregation program of the Silicon Valley Clean Energy Authority, as described in its Joint Powers Agreement. SECTION 4. This Ordinance shall be in full force and effect 30 days after its adoption, and shall be published and posted as required by law. This Ordinance was introduced by the Town Council of the Town of Los Gatos on February 2, 2016 and was adopted on February 16, 2016 by the following roll call vote: COUNCIL MEMBERS: AYES: Marcia Jensen, Steve Leonardis , Rob Rennie, Marico Sayoc, Mayor Barbara Spector NAYS: ABSENT: ABSTAIN: ATTEST: MAYO F THE TOWN OF LOS GATOS L ATOS, C LIFORNIA DATE: �j CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: 3of3 Ordinance 2250 February 16, 2016