BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SJR 13|
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THIRD READING
Bill No: SJR 13
Author: Vargas (D), et al.
Amended: As introduced
Vote: 21
SENATE ENERGY, UTILITIES & COMM. COMMITTEE : 6-2, 8/25/11
AYES: Padilla, Corbett, De Le�n, DeSaulnier, Pavley, Rubio
NOES: Fuller, Berryhill
NO VOTE RECORDED: Simitian, Strickland, Wright
SUBJECT : Public utilities: cross-border transmission
lines
SOURCE : California State Association of Electrical
Workers
DIGEST : This resolution calls upon the United States
Department of Energy to reject an application for a
cross-border Presidential permit authorizing Energ�a Sierra
Ju�rez U.S. Transmission LLC to construct, operate, and
maintain electric transmission facilities at the
U.S.-Mexico border.
ANALYSIS : Current Federal law requires that a
Presidential permit be issued by the U.S. Department of
Energy (DOE) before electric transmission facilities may be
constructed, operated, maintained, or connected at the U.S.
international border.
Current State law, effective upon the adjournment of the
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first extraordinary session, requires investor-owned
utilities, publicly owned utilities, community choice
aggregators, and energy service providers to increase
purchases of renewable energy such that at least 33 percent
of retail sales are procured from renewable energy
resources by December 31, 2020. In the interim each entity
would be required to procure an average of 20 percent of
renewable energy for the period of January 1, 2011 through
December 31, 2013; 25 percent by December 31, 2016, and 33
percent by 2020. This is known as the Renewable Portfolio
Standard (RPS).
Energ�a Sierra Ju�rez . Energ�a Sierra Ju�rez U.S., LLC is
a limited liability company, wholly owned by Energ�a Sierra
Ju�rez, S. de R.L. de C.V., a Sociedad de Responsibilidad
Limitada de Capital Variable (a Mexican Limited Liability
Company), a prospective joint venture of Sempra Generation
and BP Wind Energy (collectively referred to as Sempra).
The project has three parts. First, Sempra has land
holdings 70 miles east of San Diego and just a few miles
south of the U.S.-Mexico border located in the vicinity of
La Rumorosa, Baja California, Mexico. The land can support
as much as 1,250 megawatt (MW) of wind generation. Sempra
currently has one contract with San Diego Gas and Electric
(SDGE) for 156 MW of wind generation which is pending
review and approval by the CPUC.
The second part of this project is for transmission,
commonly referred to as a "gen-tie" which connects the
generation source with major transmission links. This
gen-tie would begin two miles south of the border at the
site of the wind turbines and extend across the border, one
mile into San Diego County. This gen-tie would also be
owned and constructed by Sempra.
Part three of the project is construction of a new
substation in eastern San Diego County by SDGE. This
project would require approval of the California Public
Utilities Commission and is also pending its review.
Presidential Permits . Any entity which seeks to construct,
operate, and maintain electric transmission facilities
across the U.S. international border must apply to the DOE
for a cross-border Presidential permit. In order for a
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permit to be issued, a finding that the proposed project is
consistent with the public interest and favorable
recommendations from the U.S. Departments of State and
Defense are required. In determining consistency with the
public interest, DOE considers the environmental impacts of
the proposed project, determines the project's impact on
electric reliability (including whether the proposed
project would adversely affect the operation of the U.S.
electric power supply system under normal and contingency
conditions), and considers any other factors that DOE may
find relevant to the public interest. DOE's issuance of a
Presidential permit indicates that there is no federal
objection to the project, but does not mandate that the
project be undertaken.
Sempra has applied to the DOE's Office of Electricity
Delivery and Energy Reliability for a Presidential permit
to construct either a double-circuit 230 kilovolt (kV) or a
single-circuit 500-kV transmission line. Sempra's proposed
transmission line would connect wind turbines to be located
in the vicinity of La Rumorosa, Baja California, Mexico, to
the existing Southwest Powerlink 500-kV transmission line
(SWPL). A decision on the permit is expected by December.
One portion of the proposed transmission project would
consist of two miles of transmission located in Mexico that
would be constructed, owned, operated, and maintained by a
subsidiary of Sempra Energy Mexico and would be subject to
the permitting requirements of the Mexican Government. The
remaining portion of the proposed transmission project
would consist of a one-mile transmission line constructed
by Sempra within the U.S. on private land. The entire
electrical output of the La Rumorosa Project (1250 MW)
would be dedicated to the U.S. market and delivered using
the proposed international transmission line. Sempra's
proposed transmission line would connect to a substation to
be constructed by SDGE in response to requests by power
suppliers to connect to the SWPL. The substation, to be
known as the East County Substation, would be located just
south of the SWPL right-of-way near the community of
Jacumba, California, and would contain equipment for
accepting interconnections at both the 230-kV and the
500-kV level.
Comments
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Purpose of this bill . The author's office reports that
"Sempra, the parent company of (SDG&E), is proposing to
outsource 1250 MW of green electrical generating capacity
to Mexico by connecting a one-mile cross-border tieline
from Mexico to the SWPL electrical transmission line close
to the San Diego County and Imperial County border. Sempra
has applied for a Presidential Permit from the U.S.
Department of Energy. The line would undercut the
ratepayer investment that has already been made on the SWPL
Transmission Line and the Sunrise Powerlink. It would also
deprive customers of the economic benefits of building the
renewable generation in southern California. These lost
benefits have been estimated at 15,000 lost U.S. jobs and
nearly $300 million in lost local, state and federal tax
revenue."
FISCAL EFFECT : Fiscal Com.: No
SUPPORT : (Verified 8/26/11)
California State Association of Electrical Workers (source)
California Labor Federation
Center on Policy Initiatives
Clean Air Initiative
Comit� Civico del Valle, Inc.
Environmental Health Coalition
Imperial County Building and Construction Trades Council,
AFL-CIO
San Diego County Building and Construction Trades Council,
AFL-CIO
State Building and Construction Trades Council, AFL-CIO
OPPOSITION : (Verified 8/26/11)
California Manufacturers and Technology Association
Sempra Generation
RM:kc 8/26/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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