BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 502|
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                                   THIRD READING 


          Bill No:  SB 502
          Author:   Leno (D)
          Amended:  4/8/15  
          Vote:     21  

           SENATE ENERGY, U. & C. COMMITTEE:  11-0, 4/7/15
           AYES:  Hueso, Fuller, Cannella, Hertzberg, Hill, Lara, Leyva,  
            McGuire, Morrell, Pavley, Wolk

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   San Francisco Bay Area Rapid Transit District:   
                     purchase and delivery of electricity


          SOURCE:    San Francisco Bay Area Rapid Transit District
          
          DIGEST:   This bill allows 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)









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          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 (ESPs), and community choice aggregators (CCA) 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 emissions to  
            1990 levels by 2020. (Health and Safety Code §38500)

          This bill requires any electric utility which owns and operates  
          transmission and distribution facilities that deliver  
          electricity to BART, upon request by BART, to deliver  
          electricity generated by an eligible renewable energy resource  
          as defined within the state's RPS.

          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  







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          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). 

          Until the passage of SB 184 (Kopp, Chapter 681, Statutes of  
          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, Chapter 206,  
          Statutes of 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. These bills permitted  
          BART to diversify its sources of energy. However, current rules  
          also require BART to compensate PG&E for the use of its  
          transmission and distributed network under tariffs regulated by  
          the Federal Energy Regulatory Commission (FERC) and the CPUC.

          Although 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 renewable energy directly 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.

          Prior/Related Legislation
          
          SB 184 (Kopp, Chapter 681, Statutes of 1995), allowed BART to  







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          procure electricity directly from the federal power marketing  
          authority.

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

          SB X1-2 (Simitian, Chapter 1, Statutes of 2011), required all  
          electricity retailers in the state including POUs, IOUs, ESPs,  
          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/Nuñez, Chapter 488, Statutes of 2006), California  
          Global Warming Solutions Act required California to reduce GHG  
          emissions to 1990 levels by 2020.

          SB 350 (De León, 2015) 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.:YesLocal:   No


          SUPPORT:   (Verified4/22/15)


          San Francisco Bay Area Rapid Transit District (source)
          Clean Power Campaign
          Coalition for Clean Air
          Environment California
          Large-scale Solar Association
          Natural Resources Defense Council
          Northern California Power Agency
          Sierra Club California
          Solar Energy Industries Association
          Union of Concerned Scientists
          Vote Solar

          ARGUMENTS IN SUPPORT: The BART Board of Directors voted to work  







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          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 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 and that SB 502 allows  
          BART to contribute to the state's goals and efforts to further  
          reduce carbon emissions. 


          Prepared by:Nidia Bautista / E., U., & C. / (916) 651-4107
          4/22/15 16:20:08


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