BILL ANALYSIS Ó
AB 631
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ASSEMBLY THIRD READING
AB 631 (Ma)
As Introduced February 16, 2011
Majority Vote
UTILITIES & COMMERCE 12-1
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|Ayes:|Bradford, Buchanan, Fong, | | |
| |Furutani, Roger | | |
| |Hernández, Huffman, | | |
| |Knight, Ma, Nestande, | | |
| |Skinner, Swanson, Valadao | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Fuentes | | |
| | | | |
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SUMMARY : States that a facility that supplies electricity to
charge electric vehicles is not a California Public Utilities
Commission (PUC)-regulated "public utility."
FISCAL EFFECT : Unknown
COMMENTS : The author introduced this bill to put into law a
recent decision by the PUC to not regulate electric vehicle
charging stations as utilities. According to the author,
"absent this bill, the needed charging stations won't exist.
Apartment complexes, parking garages, and commercial buildings
will not want to install these stations if they are regulated as
a public utility. They don't want to assume the regulatory
burden of hiring lawyers in order to invest in expanding
infrastructure."
PUC rulemaking : The PUC has taken the first step in encouraging
solutions for electric vehicles (EVs). In 2009, 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 California
Energy Commission, the Air Resources Board, 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 plug-in hybrid
electric vehicles. SB 626 (Kehoe) requires the PUC to adopt
rules by July 1, 2011.
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On July 29, 2010, the PUC issued a decision on Phase I of the
rulemaking. The PUC 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 does not make the corporation or
person a "public utility" within the meaning of the Public
Utilities Code.
Phase II of the rulemaking will consider the appropriate utility
role: 1) in the provision of electric vehicle charging services
to the public; 2) with respect to charging equipment on the
customer's side of the meter; and, 3) in cost 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 Phase II decision is
expected to be released soon.
Putting the cart before the horse : Several parties have
expressed concerns with the bill.
Pacific Gas and Electric claims this bill "undermines
legislative and PUC efforts to minimize electric grid impacts,
reduce greenhouse gas emissions and the need for new generating
capacity and foster the integration of renewable energy."
Southern California Edison (SCE) argues that the bill is
premature because the market for EV's is still in its infancy
and it is too soon to prejudge the best regulatory construct.
Moreover, SCE states that PUC is already addressing these early
market issues in its EV proceeding and has proposed to establish
a working group to bring together federal and state agencies, as
well as other stakeholders to discuss appropriate regulation.
The California Electric Transportation Coalition claim "the
issues surrounding the decision by PUC, that would be codified
in AB 631, are directly related to the issue of how the entities
identified in AB 631 will be regulated and by whom. Without the
benefit of the completion of PUC proceeding and an understanding
of customer and ratepayer protection as determined by the
proceeding, this bill is premature."
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083
FN:
0000262
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