RES-2020-016 RESOLUTION NO. 2020- 01 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM (1) AUTHORIZING THE CITY OF ANAHEIM TO
PARTICIPATE IN THE STATEWIDE CLEAN FUEL REWARD
PROGRAM FOR POINT-OF-PURCHASE ELECTRIC VEHICLE
REBATES; (2) APPROVING THE FORMS AND
AUTHORIZING THE EXECUTION OF A JOINDER
AGREEMENT AND DEPOSIT ACCOUNT AGREEMENT(S);
(3) APPROVING FURTHER ACTIONS IN CONNECTION
THEREWITH; AND (4) DETERMINING THAT ACTIONS
AUTHORIZED HEREBY ARE EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
PURSUANT TO SECTIONS 15060(C)(3) AND 15378(B)(4) OF
TITLE 14 OF THE CALIFORNIA CODE OF REGULATIONS.
WHEREAS, the City Council approved the City of Anaheim ("City") Public
Utilities Department's ("APU") participation in the California Air Resource Board's ("CARB")
Low Carbon Fuel Standard("LCFS")Program("LCFS Program")on September 13,2016; and
WHEREAS,CARB's LCFS regulation(as may be amended from time to time,the
"LCFS Regulation") provides for the issuance of"base" credits for residential electric vehicle
charging ("LCFS Base Credits") to electric distribution utilities ("EDUs") that participate in the
LCFS Program; and
WHEREAS, in September 2018, CARB adopted amendments to the LCFS
Regulation mandating the development and implementation of a statewide Point-of-Purchase
Electric Vehicle ("EV") rebate program ("EV Rebate Program"), as required by Section
95483(c)(1)(A)I of Title 17 of the California Code of Regulations ("CCR"), which is funded by
EDUs' LCFS Base Credit revenues that are assigned to the statewide program pursuant to
provisions in Sections 95481 and 95483(c) of Title 17 of the CCR. This EV Rebate Program is
known as the Clean Fuel Reward Program("CFR Program"); and
WHEREAS, CARB determined that the CFR Program should be administered
pursuant to a governance agreement and that doing so would be in the public interest,would serve
the public purposes stated in the LCFS Regulation, and would be generally consistent with the
LCFS Regulation; and
WHEREAS, the Clean Fuel Reward Program Governance Agreement ("CFR
Agreement") sets forth the rights, powers, duties, obligations, and liabilities of the participating
EDUs concerning the conduct, operation, administration, and funding of the CFR Program and
any associated fees, costs, expenses, and liabilities arising there from; and
WHEREAS,the CFR Agreement,the proposed form of which has been presented
to the City Council, is among Southern California Edison ("SCE"), Pacific Gas and Electric
Company("PG&E"), San Diego Gas&Electric Company("SDG&E"),Los Angeles Department
of Water and Power ("LADWP"), Sacramento Municipal Utility District ("SMUD") and other
EDU Parties; and
WHEREAS, with the approval of the California Public Utilities Commission
("CPUC") and CARB, SCE has agreed to serve as the interim statewide CFR Program
Administrator under the CFR Agreement; and
WHEREAS, EDUs that wish to join the LCFS Program after the effective date of
the CRF Agreement are required to execute a Joinder Agreement,the proposed form of which has
been presented to the City Council,which incorporates all of the terms and conditions of the CFR
Agreement and must be agreed to and accepted by SCE as the statewide CFR Program
Administrator; and
WHEREAS, the CFR Agreement may require each participating EDU to deposit
its share of the EDU contributions into an individual deposit account that may be drawn upon by
the CFR Program Administrator as needed to distribute point-of-purchase EV rebates,fund related
administrative costs, and cover CFR Program liabilities; and
WHEREAS,the City Charter Sections 705 and 706 empower the City Council,by
resolution,to authorize the City Treasurer/Director of Finance to deposit,or cause to be deposited,
funds under the control of the City or any City department in such depository account as may be
designated by the City Council on terms that are in the best interest of Anaheim; and
WHEREAS, the City Council considered the requirements of the California
Environmental Quality Act ("CEQA") and found that the proposed agreements required to
facilitate the City's participation in the CFR Program, including without limitation the CFR
Agreement, Joinder Agreement, and depository or other administrative agreements (collectively,
"Agreements"), primarily serve organizational and fiscal functions which do not commit the City
to a project with a potentially significant impact on the environment. As such,the Agreements do
not constitute a "project" pursuant to CEQA and are exempt from CEQA review pursuant to
Sections 15060(c)(3)and 15378(b)(4)of Title 14 of the CCR; and
WHEREAS,the City Council of the City of Anaheim hereby finds and determines
that the best interests of the City of Anaheim are served by(1)authorizing participation in the CFR
Program; (2)approving the Joinder Agreement,which incorporates all of the terms and conditions
of the CFR Agreement, between SCE, as the statewide CFR Program Administrator,and the City
as a Participating EDU; (3) authorizing City Treasurer / Director of Finance to negotiate and
establish individual deposit account(s) with appropriate financial institutions consistent with the
provisions of the CFR Agreement; (4) authorizing and directing the deposit of the City of
Anaheim's share of the monetized LCFS Base Credits into individual deposit account(s) as
required by the CFR Agreement, to be drawn upon by the CFR Program Administrator; and (5)
authorizing and approving transactions initiated by the City and/or the CFR Program
Administrator as contemplated in the Joinder Agreement and,by reference, the CFR Agreement.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of
Anaheim as follows:
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1. The above recitals are hereby adopted by the City Council of the City of
Anaheim.
2. The City Council of the City of Anaheim hereby determines that the Agreements
and the activities and undertakings referenced therein are exempt from CEQA under Sections
15060(c)(3)and 15378(b)(4)of Title 14 of the CCR because they facilitate the City of Anaheim's
participation in the CFR Program and primarily serve organizational and fiscal functions which do
not commit the City to a project with a potentially significant impact on the environment. As such,
the Agreements do not constitute a "project" pursuant to CEQA and are exempt from CEQA
review pursuant to Sections 15060(c)(3)and 15378(b)(4)of Title 14 of the CCR.
3. The City Council of the City of Anaheim hereby approves and authorizes the
City of Anaheim's participation in the CFR Program, which is a statewide EV Rebate Program.
The scope of this Resolution is intended to be broad and cover all requirements for the City of
Anaheim's continuing participation in the CFR Program,as those requirements exist currently and
as they may develop in the future, and the approvals, authorizations and directions established
herein should be interpreted accordingly.
4. The City Council hereby approves the Joinder Agreement between SCE and the
City of Anaheim,which incorporates by reference the terms and conditions of the CFR Agreement,
in the form now on file with the City Clerk,as modified with such additions,deletions,and changes
as may be made by the CFR Program Administrator and the City of Anaheim's Authorized Officer,
as defined herein, in the course of finalizing and executing the Joinder Agreement, such approval
to be conclusively evidenced by the execution and delivery thereof.
5. The City Council hereby authorizes and directs the City Treasurer/Director of
Finance, the Public Utilities General Manager, the Public Utilities Assistant General Managers,
the City Attorney, and their respective designees (each, an"Authorized Officer")to execute, and
the City Clerk to attest, the final form of the Joinder Agreement on behalf of the City. The City
Council hereby authorizes the delivery and performance of the Joinder Agreement in such final
form.
6. The City Council hereby authorizes and directs the City Treasurer/Director of
Finance or designees to negotiate and establish individual deposit account(s) with appropriate
financial institution(s) consistent with the provisions of the CFR Agreement, and to deposit the
City of Anaheim's share of the monetized LCFS Base Credits into the individual deposit
account(s) so the account(s) may be drawn upon by the CFR Program Administrator or designee
as may be required by the CFR Agreement.
7. The City Council hereby authorizes and directs the Authorized Officers and the
City Clerk of the City of Anaheim,as well as other officers,employees and agents of the City with
responsibility for any aspect of the City of Anaheim's participation in the CFR Program, to take
all actions they may deem necessary, appropriate, or advisable to achieve full, efficient and
economical participation in the CFR Program and consummate the transactions contemplated in
both the Joinder Agreement and the CFR Agreement incorporated therein, including without
limitation the preparation, execution and performance, as appropriate, of additional agreements,
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notices, certificates, affidavits, opinions of counsel, instruments of conveyance, and other
documents.
8. The City Council hereby acknowledges that the CFR Program is subject to
future substantive and procedural changes going forward due to many possible influences,
including changes in policy or personnel at the State level and changes in procedure that may
follow the appointment of a new Program Administrator, and to the maximum extent possible the
City Council intends for this Resolution to establish authority and direction that is sufficiently
broad and flexible to adapt to such changes without the need for the City Council to regularly
reestablish the City's commitment to the CFR Program. As such, the Authorized Officers, and
each of them, are authorized to take all actions necessary, required, or advisable to implement,
administer, fund, and carry out the City's continuing responsibilities under the CFR Program,
which may include without limitation the revision and renewal of future Joinder Agreements,
which incorporate by reference changes to the terms and conditions of future CFR Agreements,
and the execution and delivery of new individual deposit account agreements as needed to facilitate
the City of Anaheim's continuing participation in the CFR Program.
9. This Resolution shall take effect from and after its date of adoption.
THE FOREGOING RESOLUTION was approved and adopted by the City Council
of the City of Anaheim at a regular meeting of said City Council held on the 4th day of February,
2020, by the following roll call vote:
AYES: Mayor Sidhu and Council Members Faessel, Barnes,
Brandman, Moreno, Kring, and O'Neil
NOES: Non
ABSENT:None
ABSTAIN: None
CIT OF ANAHEIM
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I• ' ITY OF ANAHEIM
ATTEST:
CITY CLERK OF HE CITY OF ANAHEIM
135691
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CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM
I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original Resolution No. 2020-016 adopted at a regular meeting provided by law, of the Anaheim
City Council held on the 4th day of February, 2020 by the following vote of the members thereof:
AYES: Mayor Sidhu and Council Members Faessel, Barnes, Brandman,
Moreno, Kring, and O'Neil
NOES: None
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand this 5th day of February, 2020.
CITY CLERK OF THE CITY OF ANAHEIM
(SEAL)