HomeMy WebLinkAbout~Master - Purchase of emissions allowances RESOLUTION NO.09-096
RESOLUTION APPROVING REVISION TO PURCHASING POLICIES
ALLOWING FOR PURCHASE OF EMISSIONS ALLOWANCES
FOR THE CITY OF AMES
WHEREAS, the U.S. Environmental Protection Agency (EPA) Clean Air Interstate Rule (LAIR)
requires facilities that emit nitrogen oxide(NOX)in excess of their U.S.EPA allotment of allowances to obtain
allowances from facilities whose actual emissions are less than their allotment,and,therefore,have allowances
to sell; and,
WHEREAS,the City is responsible for purchasing allowances to offset excess NOX emissions emitted
effective as of January 1,2009; and,
WHEREAS,this program creates a market for the NOX allowances,and the market price of allowances
fluctuates constantly throughout each market day,much as does the cost of purchased power; and,
WHEREAS, because this type of commodity purchasing is not suited to traditional bidding
procedures,staff is proposing revisions to the Purchasing Polices and Procedures that will exempt the purchase
of emissions allowances from the requirement for a purchase order and the requirement for formal,competitive
bidding; and,
WHEREAS,the current purchasing policies provide exceptions to the requirement for a purchase order
and traditional competitive bidding, and according to our policies, these exceptions are to allow processing
of payments for commodities and services that are routine and noncompetitive,or that are not compatible with
traditional competitive bidding processes; and,
WHEREAS,the proposed changes will enable Electric Services staffto purchase emission allowances
in this new commodity market, and will facilitate purchase when the prices are most advantageous; and,
WHEREAS, since the budget allocated for the purchase of allowances for 2008/09 and 2009/10 is
over$4 million total,it is imperative that staff be able to move quickly to take advantage of the most favorable
prices possible on the needed allowances.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the
revisions to the purchasing policies adding emissions allowances to the list of exceptions to the requirement
for a purchase order and to the list of exceptions to the requirement for traditional competitive bids,quotations,
or proposals are hereby approved.
ADOPTED THIS 10t'day of March, 2009.
(.y-a& /4V� ' CLAN
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Mahayni
Seconded by: Popken
Voting aye: Doll, Goodman,Mahayni,Popken,Rice
Voting nay: None Absent: Larson
Resolution declared adopted and signed by the Mayor this 1 Oh day of March, 2009.