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Needles City approves sale of 2023 greenhouse-gas allowances amid debate over local benefit
Summary
The Needles City Council approved a 2023 greenhouse-gas allowance transaction with CP Energy Marketing LP but drew objections from a board member who said the town—s $620,000 benefit flows to corporations; staff said a local solar project would provide only a small offset to compliance costs.
The Needles City Council on Oct. 15 approved an agreement to sell 2023 greenhouse-gas emission allowances to CP Energy Marketing LP after a brief debate over local benefits.
A board member opposing the transaction said the town of about 5,000 residents was effectively losing money to outside firms, saying, "we have a $620,000 and it goes for nothing. It goes to corporations. I am appalled." Staff responded that the city—s recently discussed solar project would produce only a small offset relative to compliance obligations and described avoided-cost projections that grow over the life of the compliance period.
The discussion centered on whether a city-operated solar installation could materially reduce the municipality—s net compliance purchases. Staff noted the solar system being considered would be one to a few megawatts and, while it would produce savings, it would not meet the procurement percentages that larger utilities are required to meet under California Air Resources Board (CARB) procurement targets. Staff presented year-by-year avoided-cost estimates, starting in the low hundreds of thousands and increasing in later years.
A motion to approve Item 3 was made and seconded; the council conducted a roll-call vote and recorded affirmative votes to approve the transaction.
The council did not adopt any additional binding requirement tying proceeds to a specific local energy project at the meeting. Members who pressed for including solar in long-range planning were told those considerations would be evaluated as part of the upcoming rate study and the ad hoc committee that the council later appointed.
