Needles board accepts CARB support letter on allowance changes and flags advanced clean fleet rule as an unfunded mandate

A board member presented an agenda packet and a draft letter—prepared with assistance from the California Municipal Utilities Association (CMUA)—asking the California Air Resources Board (CARB) to increase the free greenhouse-gas allowances received by small public utilities. The presenter said the proposed change would increase Needles'free allowances by about 322% and would help reduce the utility's need to purchase offsets.

"For our last triannual compliance period, which was 21 to 24, we spent $1.7 million on just offsets for greenhouse gas," the presenter said, noting that those costs are borne by local ratepayers. The board moved, seconded and voted by roll call to accept and file the letter; Campbell, Jones, Walters, McNeel, Kairens and Pal recorded votes in favor.

During discussion the board and staff emphasized the city's small size, low-income customer base and limited local adoption of electric vehicles. One board member said Needles is not part of the CAISO market but part of the Southwest power pool and questioned why some statewide criteria would apply to the city. Several speakers called the advanced clean fleet rule (zero-emission fleets by 2045) an unfunded mandate that would be difficult for small utilities to meet without state funding, citing lack of commercially available electric bucket trucks and the need for charging infrastructure at multiple service yards.

The ad hoc greenhouse-gas committee (board members who attended CMUA meetings) will continue to monitor CARB's rulemaking and advise staff on whether to submit formal opposition letters if regulations remain financially burdensome for the city. The board noted the mayor had already signed the letter to meet the CARB comment deadline and said the city council would ratify the item later.