BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE ALEX PADILLA, CHAIR SB 1455 - Kehoe Hearing Date: April 6, 2010 S As Introduced FISCAL B 1 4 5 5 DESCRIPTION Current law requires the California Public Utilities Commission (CPUC) to direct the development of an infrastructure sufficient to facilitate the widespread use of plug-in hybrid electric vehicles and full electric vehicles (collectively EVs) and to adopt rules to address infrastructure barriers by July 1, 2011. This bill requires the CPUC to prepare and make available a handbook that notifies an EV owner of specified safety features and hazards associated with charging an EV at home and whom should be contacted to ensure that a charging location conforms to any applicable code. BACKGROUND Ready or Not, Here They Come - According to the California Energy Commission (CEC) there were 14,670 EVs operating in California in 2008 down from an industry high of 23,399 in 2003. However an increasing number and variety of EVs are expected to hit the showroom floors of car dealers in the coming months and years. The CEC expects the number of EVs to grow from 32,756 in 2011 to 1.5 million by 2020 and 2.8 million by 2030. An historic number of automakers have already begun or announced deployment of a range of on-road EVs, including light-duty plug-in hybrid EVs, full-size battery EVs, two wheel battery EVs, and three or four wheel low-speed neighborhood EVs beginning this year. Readying the Grid - The state's investor-owned utilities (IOUs) do have tariffs in place for electric cars and have assisted residential customers and fleet managers with the charging infrastructure necessary for the vehicles on a limited basis. However regulators, the utilities and the electric grid are not ready for the thousands of cars expected. Infrastructure investments and policies at the customer site, commercial site, public charging site, and distribution system level are all required to prepare the electricity system for the widespread use of EVs. In response to the marketplace and the directives of SB 626 (Kehoe, 2009) the CPUC has initiated a rulemaking (R.09-08-009) to determine the barriers and opportunities presented by EVs on the grid. Issues under consideration include rate design for the charging of EVs, options for development of metering and charging infrastructure, and how to incorporate EV charging with renewable energy supply. COMMENTS 1) Author's Intent . As an increasing number of EVs come to the new car market, the author is concerned about whether the buyers of those vehicles will have the information they need to understand the relationship between a vehicle that needs to be charged at home and the electrical features and safety measures they will need to consider in order to safely and appropriately charge their vehicle. The author notes that information coming from the manufacturer of an EV will likely be limited to the features and basic charging requirements for that vehicle and not the infrastructure necessary to establish a charging connection for the EV. To address these issues the bill requires the CPUC to develop a handbook for EV owners or potential buyers of an EV. 2) Intended Audience . The information that a potential buyer of an EV needs is very different from that of an EV owner but the bill attempts to meld the two. When considering the purchase of an EV the consumer will have many questions not easily answered beginning with the type of charging infrastructure available, whether the retrofit of a home's electric system is necessary, whom to contact to do a needs determination, electric rates for charging an EV, and the cost of installing a charger in the home. If these questions are not asked and answered before the EV purchase, a consumer could end up with an EV but no place to charge it since it is not at all clear that a new car dealer is obligated to take a car back if the consumer has no means to charge it. Once the consumer owns an EV and has a charging infrastructure in place it would seem to be incumbent on the installer of the charging infrastructure (be it a utility or private party) to educate the consumer on the proper use and safety precautions associated with charging the vehicle which could vary depending on the equipment. In considering these issues the author intends to amend the bill to direct the CPUC to provide consumer information on the essentials of readying a residence for an EV charging infrastructure including the specialized charging equipment necessary for an EV, tariffs, metering and load management techniques, and any other information deemed necessary to ensure that a consumer who intends to purchase an EV is aware of the cost and infrastructure associated with fueling the EV. This would provide the consumer and motor car dealers one clear and authoritative source of information for the essentials of accommodating EVs. 3) Distribution Mechanism . This bill requires the CPUC to develop a handbook but does not indicate what the CPUC's responsibility is to distribute the handbook. In considering this issue the author intends to amend the bill to limit distribution of the consumer information to the CPUC's website. 4) Related Legislation . SB 1437 (Kehoe) requires the CPUC to determine the costs to be borne by each class of ratepayers for the costs of bringing EVs to the grid. 5) Double Referral . Should this bill pass this committee, it should be re-referred to the Senate Transportation and Housing Committee. POSITIONS Sponsor: Author Support: None on file. Oppose: None on file. Kellie Smith SB 1455 Analysis Hearing Date: April 6, 2010