AGENDA TITLE:
title
Adopt a Resolution Authorizing the Electric Utility and Public Works Department Directors to Execute a Memorandum of Agreement between City of Lodi Public Works Department and Lodi Electric Utility for Purchase of Senate Bill 1383-Eligible Electricity Procured from Biomass Facilities that Convert Recovered Organic Waste (PW)
end
MEETING DATE:
June 18, 2025
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the Electric Utility and Public Works Department Directors to execute a Memorandum of Agreement between City of Lodi Public Works Department and Lodi Electric Utility for purchase of Senate Bill 1383-eligible electricity procured from biomass facilities that convert recovered organic waste.
body
BACKGROUND INFORMATION:
Senate Bill 1383 (SB 1383) requires jurisdictions to annually procure specific quantities of recovered organic waste products to meet their individual procurement targets. Procurement targets are assigned by CalRecycle and are calculated based on jurisdictions population and recalculated every five years. Procurement requirements are designed to strengthen California’s green, self-sustaining economy and increase demand for these products to drive infrastructure investment and create new, green jobs within California. Organic waste can be recycled into new products such as compost, mulch, biofuel, and electricity and can benefit local communities, improve soil and air quality, and support local environmental initiatives.
Lodi Electric Utility (LEU), as part of its obligations outlined in the City of Lodi Energy Risk Management Policy (ERMP) overseen by the City of Lodi Risk Oversight Committee, is responsible for procuring directly and indirectly through the Northern California Power Agency energy, capacity, generator fuel, transmission, transportation, storage, Renewable Energy Credits, Greenhouse Gas allowances, ancillary services and other products/services necessary to meet regulatory requirements consistent with the ERMP such as recovered organic waste products procured from biomass conversion.
The Public Works Department is responsible for meeting the procurement goals assigned to the City of Lodi. In partnership with LEU, the City can meet these procurement goals by purchasing electricity procured from biomass conversion. This partnership between departments allows Public Works to meet these goals at a lessor rate than procuring recycled organics products from an outside vendor, while offsetting a portion of the cost for LEU.
Staff recommends authorizing the Electric Utility and Public Works Department Directors to execute a Memorandum of Agreement between City of Lodi Public Works Department and Lodi Electric Utility for purchase of Senate Bill 1383-eligible electricity procured from biomass facilities that convert recovered organic waste.
STRATEGIC VISION:
3. Fiscal Health.
FISCAL IMPACT:
This Memorandum of Agreement is fiscally beneficial to both the Public Works Department and LEU reducing the cost of meeting the City’s procurement goals for Public Works, while offsetting the cost of green electricity purchase for LEU.
FUNDING AVAILABLE:
Not Applicable.