FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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SALE OF ENERGY CREDITS
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
Authorize the General Manager, or designee, on an ongoing basis to sell, transfer, or otherwise monetize renewable energy credits derived from Orange County Sanitation District’s generation facilities that are determined to be in excess of Orange County Sanitation District’s operational or regulatory requirements, through solicitation methods determined to be in Orange County Sanitation District’s best interest, provided that such transactions comply with applicable laws and regulations and are sold at market value.
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BACKGROUND
Orange County Sanitation District (OC San) reclamation plants generate renewable energy as part of their operations. This energy generation results in the creation of Renewable Energy Credits (RECs), which represent the environmental attributes associated with renewable energy production.
RECs may be used to demonstrate renewable energy generation or compliance with applicable sustainability and regulatory requirements. As OC San continues to operate its energy-generating facilities, additional RECs are generated on an ongoing basis.
RECs are not necessary to support OC San’s operational, regulatory, and sustainability needs. Excess RECs have market value and can potentially be sold to other entities seeking to meet renewable energy or sustainability objectives. Selling surplus RECs provides an opportunity for OC San to realize value from the credits.
RELEVANT STANDARDS
Ensure that investment proposals and decisions are based on clearly defined standards
PROBLEM
OC San generates RECs in excess of its needs. Because these credits can decline in value over time, timely sale of surplus RECs is necessary to maximize their value to OC San.
PROPOSED SOLUTION
Authorize the General Manager, or designee, on an ongoing basis...
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