BILL ANALYSIS SB 1455 Page 1 Date of Hearing: June 21, 2010 ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE Steven Bradford, Chair SB 1455 (Kehoe) - As Amended: June 1, 2010 SENATE VOTE : 35-0 SUBJECT : Plug-in hybrid and electric vehicles: Internet Web site. SUMMARY : Requires the California Energy Commission (CEC), in consultation with the California Public Utilities Commission (PUC) to develop and maintain an Internet Web site containing specific links to public utilities' web sites that contain information specific to plug-in hybrid (PHEV) or fully electric vehicles (EVs). Specifically, this bill : 1)By July 1, 2011, requires the CEC, in consultation with the PUC, to develop and maintain an Internet Web site containing specific links to electrical corporation and local publicly owned electric utility Internet Web sites or other sites that contain information specific to PHEVs or EVs. 2)Requires the CEC to include the following information: a) Whether a vehicle will require a utility service upgrade at the consumer's residence; b) Basic charging circuit requirements; c) Utility rate options; and, d) Load management techniques. EXISTING LAW requires the PUC to evaluate policies to develop infrastructure sufficient to overcome any barriers to the widespread deployment and use of PHEVs and EVs, and adopt rules by July 1, 2011. FISCAL EFFECT : Unknown. COMMENTS : The author states that with the transportation sector making up 40% of the state's greenhouse gas emissions, it is in the best interest of the state to ensure that PHEVs and SB 1455 Page 2 EVs be part of the solution to achieve transportation sector greenhouse gas emission reductions. It is therefore important for the state to help consumers find useful information that will help them make informed decisions about the relationship between their home, the energy grid and purchasing a PHEV or EV. Providing important and useful links from energy utilities and other internet web sites will help educate consumers. Plug-in hybrids and electric vehicles : A typical PHEV combines an internal combustion engine and a battery storage system. A few PHEV demonstration vehicles are on California's roads today. Most are "conversions" or traditional hybrids that have been converted to PHEVs. A PHEV can be designed to operate in different ways. For example, it could be designed to operate using just battery power for distances such as 20 miles. This all-electric or zero-emission mode is appealing in California's congested smoggy inner cities. It can be an electric vehicle for everyday short trips and a gasoline car for longer trips on the weekend. A PHEV can also be designed to operate in a way that optimizes the vehicle's performance, fuel economy, or other attributes. In this "blended mode" a PHEV has less all-electric range but can get fuel economy of up to 100 mpg. Electric vehicles include, but are not limited to, PHEVs, battery electric vehicles, electric golf carts and neighborhood electric vehicles (NEVs). Electric vehicles are known to have faster acceleration, but shorter distance range than conventional petroleum-fueled engines. They produce no exhaust, but require rather long charging times. Smaller neighborhood electric vehicles use a plug that will plug into any 110 volt outlet. However, full-function EVs use 220-240 electrical outlet with charging time varying, depending on how "empty" the battery is, how much energy the battery holds, and other factors. In general, it takes approximately six to eight hours to recharge vehicles that are "empty." Full-function EVs will also require installation of specific charging equipment. Current or near-term major manufacturers of electric vehicles include, Ford, General Motors, Honda, Mercedes, Mitsubishi, Nissan, Subaru, and Toyota. Other EV manufacturers include Tesla Motors, Think Global, Phoenix Motorcars, and others. Policy background : AB 1493 (Pavley) Chapter 200, Statutes of SB 1455 Page 3 2002, required the California Air Resources Board (ARB) to develop and adopt, no later than January 1, 2005, regulations that achieve the maximum feasible and cost-effective reduction of greenhouse gases emitted by motor vehicles. In response to AB 1493, ARB promulgated regulations that require 11 percent of the vehicles produced and delivered for sale in California must be zero-emission vehicles (ZEVs) by model year 2010-11. (Some PHEVs do not qualify as ZEVs if they still use an internal combustion engine.) That number will grow incrementally until 2018 when a minimum of 16 percent of the vehicles produced and delivered for sale in California must be ZEVs. Manufacturers may comply with the requirements through multiple alternative compliance options that include the production of low-emission vehicles. In its 2005 Integrated Energy Policy Report, the California Energy Commission (CEC) recommended that the state establish a public/private "working group to examine the markets for development and commercialization of [PHEVs]" and "develop partnerships with equipment manufacturers to demonstrate [PHEVs], assess consumer demand for these options, and support early incentives to reduce initial consumer costs." AB 1077 (Lieber) intended to implement the recommendation; however, it failed passage in the Senate. On January 18, 2007, Executive Order S-1-07 created the Low Carbon Fuel Standard (LCFS) and called for a reduction of at least 10 percent in the carbon intensity of California's transportation fuels by 2020. It instructed the California Environmental Protection Agency to coordinate activities between the University of California, the CEC and other state agencies to develop and propose a draft compliance schedule to meet the 2020 target. It also directed the ARB to consider initiating a regulatory proceeding to establish and implement the LCFS. In response, ARB identified the LCFS as an early action item with a regulation to be adopted and implemented by 2010. Joint hearing : On May 24, 2010, the Assembly Transportation Committee and this committee held a joint hearing to explore the requirement that manufacturers produce and deliver electric vehicles for sale in California as a greenhouse gas reduction method. Some of the questions and concerns raised included: (1) are we shifting greenhouse gas emissions from the transportation sector to the electricity generation sector, (2) how will the needed infrastructure to re-power EVs be developed and by whom, SB 1455 Page 4 (3) how will rates be set to encourage the efficient use of the electricity infrastructure when recharging EVs, and (4) how can California address a market for retail electricity at remote public or private re-charging stations. The CEC testified that California has 413 charging stations with 1,300 public access electric charge points. Many of the existing charging stations need to be upgraded to charge the new PHEVs, however, the CEC did not address how these would be funded. The CEC reported that it has already issued about $15.3 million in grants for charging stations. The Sacramento Municipal Utility District testified that the EV owner pays for an additional meter that must be installed at the residence with a dedicated EV charging outlet. SMUD's EV charging rate is approximately half the regular residential rate, or about $0.04 per kWh for off-peak charging to recharge an electric vehicle. Southern California Edison stated that that PHEVs are available with different options for charging, some of which may require a home electrical panel upgrade in addition to a dedicated 240 volt circuit. If the customer wants to be able to install faster-charging Level Two capability, the customer may need an upgrade to the home electrical panel at the customer's cost. Is this information currently available : Neither the CEC nor PUC have easily accessible information on their Internet web sites that would include the information required by this bill. PG&E includes information about establishing special electricity service (E-9 service), the E-9 rate, and installation of a time-of-use meter. In addition, it includes an Electric Vehicle Supply Equipment Installation Manual that provides customers and contractors with information to properly install all required electric vehicle charging equipment at a customer's site. The manual includes references to specific California electrical code information, equipment regulations and requirements, permitting issues, load management and electric vehicle charging rate information. Southern California Edison (SCE) is the easiest and most useful site, and includes a very easy-to-locate page titled, "Get Plug-in Ready" that provides all the information a customer needs to decide whether to purchase an electric vehicle, and the necessary information for the installation of a meter, rates, SB 1455 Page 5 and other relevant information. San Diego Gas and Electric and the Sacramento Municipal Utility District also provide an easy-to-locate site with all of the pertinent information required by this bill. Los Angeles Department of Water and Power only states what the customer needs to know in three bullet points, ((1) Understand the different vehicle and charging options. (2) Find out what it will take to install a charger at your home. (3) Research available financial and rate incentives), however, it doesn't provide any of the information and doesn't offer a link to a site that would contain the necessary information. PUC Rulemaking : Last year, the PUC opened a rulemaking (R-09-08-009) to consider infrastructure, rates, and policies to support EVs. The rulemaking also addressed the requirements of SB 626 (Kehoe) Chapter 355, Statutes of 2009, which requires the PUC, in consultation with the CEC, the ARB, electrical corporations, and the motor vehicle industry, to evaluate policies to develop infrastructure sufficient to overcome any barriers to the widespread deployment and use of PHEVs. SB 626 requires the PUC to adopt rules by July 1, 2011. On May 21, 2010, Commissioner Ryan issued a proposed decision on Phase I of the rulemaking. The commissioner ruled that the ownership or operation of a facility that sells electricity at retail to the public for use only as a motor vehicle fuel and the selling of electricity at retail from that facility to the public for use only as a motor vehicle fuel does not make the corporation or person a public utility within the meaning of the Public Utilities Code. This decision implies that the commissioner considers retail electricity for use as a vehicle fuel as a competitive industry. This consideration may exempt the investor-owned utilities from being required to invest in public recharging facilities meters. If the utilities are required to invest in the charging infrastructure, the PUC often allows the utilities to allocate costs across its customer base, regardless of which customers would use the infrastructure. However, the commission did not render a decision on the utilities' cost-recovery methods in this phase of the rulemaking. Phase II of the rulemaking will consider the appropriate utility role in the provision of electric vehicle charging services to the public; the appropriate utility role with respect to charging equipment on the customer's side of the meter; and cost SB 1455 Page 6 allocation, including a consideration of the circumstances in which the costs of any distribution system upgrades should be borne by an individual customer or be recoverable from all customers, in addition to other related issues. The PUC may or may not address the information required by this bill. If the Phase II decision requires the utilities to include the information required by this bill in their Internet web sites, the PUC would only require the information from the utilities it regulates, the investor-owned utilities. REGISTERED SUPPORT / OPPOSITION : Support California Public Utilities Commission (CPUC) Plug In America Southern California Edison (SCE) (if amended) Union of Concerned Scientists Opposition None on file. Analysis Prepared by : Gina Adams / U. & C. / (916) 319-2083