BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
                              Senator Ben Hueso, Chair
                                2015 - 2016  Regular 

          Bill No:          SB 502            Hearing Date:    4/7/2015
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          |Author:    |Leno                                                 |
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          |Version:   |2/26/2015    As Introduced                           |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Nidia Bautista                                       |
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          SUBJECT: San Francisco Bay Area Rapid Transit District:   
          purchase and delivery of electricity.

          DIGEST:    This bill will allow the San Francisco Bay Area Rapid  
          Transit District (BART) to purchase wholesale electricity from a  
          renewable energy resource that is eligible under California's  
          Renewable Portfolio Standard (RPS).
          
          ANALYSIS:
          
          Existing law:
           
             1.   Requires any electric utility which owns and operates  
               transmission and distribution facilities that deliver  
               electricity to BART, upon request by BART, to deliver  
               preference power purchased from a federal power marketing  
               agency or local publicly-owned utility (POU). (Public  
               Utilities Code §701.8)

             2.   Requires the electric utility to bill BART as though all  
               the electricity purchased were metered by a single meter at  
               one location. (Public Utilities Code §701.8)

             3.   Provides that any lease entered into between BART and an  
               electrical utility, for special facilities to receive power  
               at transmission level voltages, cannot be terminated  
               without BART's consent. (Public Utilities Code §701.8)

             4.   Requires investor-owned utilities (IOUs), electric  
               service providers, and community choice aggregators (CCA)  







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               to increase procurement from eligible renewable energy  
               resources to 33 percent of total procurement by 2020.  
               (Public Utilities Code §399.11 et seq.)

             5.   Requires California to reduce its greenhouse gas (GHG)  
               emissions to 1990 levels by 2020. (Health and Safety Code  
               §38500)

          Background

          BART is a regional light rail system that includes 104 route  
          miles of track and 44 stations serving communities in the Bay  
          Area region, including the counties of Alameda, Contra Costa,  
          San Francisco, and San Mateo. BART averages nearly 400,000  
          weekday trips, each trip averaging a distance of 14 miles. The  
          BART system provides nearly half of all transit passenger miles  
          travelled in the Bay Area. 

          BART trains are 100 percent electric. According to the "BART  
          Green Factsheet," clean hydroelectric power and renewable  
          resources account for 53 percent of the power BART uses.  
          Specifically, the BART District procures electricity from a  
          local POU, the Northern California Power Agency (NCPA), a  
          federal agency known as the Western Area Power Administration  
          (WAPA), a 2.5 MW solar facility through an NCPA arrangement, and  
          net energy metered solar electric generation located at three  
          BART facilities.  BART is the cleanest transit system in the  
          country as defined by the carbon dioxide emissions per passenger  
          mile (based on a 2007 National Transit Database joint analysis  
          by the Federal Transportation Agency, U.S. Department of Energy  
          and U.S. Environmental Protection Agency). 

          Up until the passage of SB 184 (Kopp, 1995), BART was procuring  
          all its energy from the region's IOU, PG&E. SB 184 allowed BART  
          to procure electricity directly from the federal power marketing  
          authority. Under the federal Reclamation Project Act of 1939,  
          BART qualifies as a preference entity to purchase and receive  
          hydropower from the Central Valley Project (CVP).  Additionally,  
          SB 1838 (Kopp, 1998) exempts BART District's preference from  
          federal power delivery from statutes and California Public  
          Utilities Commission (CPUC) regulations governing direct access  
          transactions related to electric power. While the bills provided  
          for BART to diversify its sources of energy, they also require  
          BART to compensate PG&E for the use of its transmission and  
          distributed network under tariffs regulated by the Federal  








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          Energy Regulatory Commission (FERC) and the CPUC.

          While BART maintains the least carbon emitting transit system in  
          the country, the BART District Board is interested in further  
          reducing the system's carbon footprint while balancing costs  
          that could raise fare prices. However, current law limits BART's  
          ability to procure more renewable energy as those procurements  
          would need to be done through a third party transaction, such as  
          the federal power marketing authority or a local POU.



             
          Comments
          
           Has This Train Left the Station  ? Prior legislation provided BART  
          the unique opportunity to procure energy directly from sources  
          other than the local regulated utility, while continuing to  
          compensate the local regulated utility for the transmission and  
          distribution costs associated with the delivery of service. SB  
          502 does not impact any of those prior arrangements. Instead, as  
          currently written, the bill would merely add eligible renewable  
          resources to the list of energy sources that can be procured by  
          BART.

           Amendments:
              1)   The author and committee may consider amending the bill  
               to further narrow the definition of eligible renewable  
               energy sources to the specific definition in the state's  
               RPS.

           Additional Consideration  . Should this bill move forward, the  
          author and committee may wish to ensure continued consistency  
          with pending legislation with regards to the definition of  
          eligible renewable energy resources.

          Prior/Related Legislation
          
          SB 184 (Kopp, Chapter 681, Statutes of 1995), allows BART to  
          procure electricity directly from the federal power marketing  
          authority.

          SB 1838 (Kopp, Chapter 206, Statutes of 1998), exempts BART  
          District's preference from federal power delivery from statutes  
          and CPUC regulations governing direct access transactions  








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          related to electric power.

          SB X1-2 (Simitian, Chapter 1, Statutes of 2011), requires all  
          electricity retailers in the state including POUs, IOUs,  
          electricity service providers, and CCA to adopt new RPS goals.  
          Specifically: that 20 percent of electricity retail sales are  
          served by renewable energy resources by 2013, 25 percent by the  
          end of 2016 and 33 percent by 2020.

          AB 32 (Pavley/Nunez, Chapter 488, Statutes of 2006), California  
          Global Warming Solutions Act requires California to reduce GHG  
          emissions to 1990 levels by 2020.

          SB 350 (De León) proposes to create or expand three related  
          clean-energy goals, including updating the state's RPS to 50  
          percent of total retail sales of electricity from renewable  
          resources by 2030.



          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          No


            SUPPORT:  

          Clean Power Campaign
          Coalition for Clean Air
          Environment California
          Northern California Power Agency
          San Francisco Bay Area Rapid Transit District
          Sierra Club California
          Solar Energy Industries Association
          Union of Concerned Scientists
          Vote Solar

          OPPOSITION:

          None on file.

          ARGUMENTS IN SUPPORT:    The BART Board of Directors has voted  
          to work towards increasing the District's use of renewable  
          energy. However, they argue that current state law limits the  
          sources from which BART can procure renewable electricity. The  
          author argues that SB 502 would provide BART added flexibility  








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          to procure additional renewable resources should it choose to do  
          so. The author states that the existing arrangements to  
          compensate the local regulated utility for transmission and  
          distribution costs would be maintained.  SB 502 would allow BART  
          to contribute to the state's goals and efforts to further reduce  
          carbon emissions. 
          
          ARGUMENTS IN OPPOSITION:    None on file.

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