BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 730
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    SB 730
           AUTHOR:     Kehoe
           AMENDED:    April 5, 2011
           FISCAL:     Yes               HEARING DATE:     May 2, 2011
           URGENCY:    No                CONSULTANT:       Caroll 
           Mortensen
            
           SUBJECT  :    ELECTRIC VEHICLE CHARGING

            SUMMARY  :    
           
            Existing law  , under the California Alternative and Renewable 
           Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act 
           of 2007 (Health and Safety Code §44270 et seq.):

           1) Contains general provisions relating to both the 
              Alternative and Renewable Fuel and Vehicle Technology 
              Program and the Air Quality Improvement Program that:

              a)    Defines "full fuel-cycle assessment" to be an 
                 evaluation and comparison of environmental and health 
                 impacts in the life cycle of fuel, including certain 
                 matters (e.g., feedstock production, fuel production, 
                 and vehicle operation).

              b)    Authorizes the State Energy Resources Conservation 
                 and Development Commission (CEC) and the State Air 
                 Resources Board (ARB) to determine definitions of terms 
                 used for the programs and to identify revenue streams 
                 for programs.

              c)    Provides that for purposes of both programs, eligible 
                 projects cannot include those required to be undertaken 
                 pursuant to state or federal law.

           2) Creates the Alternative and Renewable Fuel and Vehicle 
              Technology Program that:

              a)    Requires CEC to provide competitive grants, revolving 









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                 loans, loan guarantees, or loans to certain interests 
                 (e.g., public agencies, businesses, fleet owners, 
                 consumers) to develop and deploy innovative technologies 
                  that change the state's fuel and vehicle types to help 
                 attain the state's climate change policies.  
                 (§44272(a)).

              b)    Requires CEC to provide preferences to those projects 
                 maximizing the program goals based on certain project 
                 criteria (e.g., consistency with climate change policy, 
                 ability to reduce criteria air pollutants and air 
                 toxics, provide nonstate matching funds).  (§44272(c)).

              c)    Lists projects eligible for funding under the 
                 program.

              d)    Provides single source contract authority.

              e)    Provides funding through various fees.

           3) Under the California Global Warming Solutions Act of 2006 
              (CGWSA) (§38500 et seq.):

              a)    Requires ARB to determine the 1990 statewide 
                 greenhouse gas (GHG) emissions level and approve a 
                 statewide GHG emissions limit that is equivalent to that 
                 level, to be achieved by 2020, and sets various 
                 requirements to meet this requirement.  

              b)    Requires ARB to develop a "Scoping Plan" that 
                 provides guidelines on achieving GHG reductions.

           4) Authorizes cities and counties to require building permits 
              for the construction, alteration, improvement, demolition, 
              or repair of any building or structure.  If a city or 
              county does require such building permits, current law 
              requires them to use a statutory form for permit 
              applications.  (§19825). 

            This bill  :  

           1) Requires a building permit to be issued for electric 
              vehicle charging equipment be approved within one business 









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              day.

           2) Adds to the list of eligible projects under the Alternative 
              and Renewable Fuel and Vehicle Technology Program, a 
              program to provide funding to local governments that exceed 
              the proposed requirement in #1 above by accepting building 
              permit applications for the installation of vehicle 
              charging equipment online. 

            COMMENTS  :

            1)Purpose of Bill .  According to the author, electric vehicle 
             manufacturers and service providers have identified a 
             serious delay between the time someone purchases an 
             electrical vehicle and when the necessary permit, 
             installation, and inspection of electric vehicle charging 
             equipment is complete.  These delays range between 20 and 40 
             days.  Lengthy delays in this process have the potential to 
             dissuade perspective EV purchasers from that purchase.  In 
             order to promote the market penetration of zero-emission 
             electric vehicles, the author asserts that it is in the 
             state's best interest to ensure there is a process in place 
             at the local government level that enables the smooth 
             deployment of electric vehicle charging infrastructure.

            2)The Alternative and Renewable Fuel and Vehicle Technology 
             Program  .  This program is administered by the CEC and  
             provides grants, revolving loans, loan guarantees, loans, or 
             other appropriate funding measures to public agencies, 
             vehicle consortia, businesses, consumers, recreational 
             boaters, and academic institutions to develop and deploy 
             innovative technologies that transform California fuel and 
             vehicle types to help attain the California's climate change 
             policies. 
                
             Funding of approximately $100 million annually for this 
             program comes from additional fees on vehicle registrations, 
             special identification plates for various vehicles, and 
             vessel registrations, plus $10 million annually from the 
             Public Interest Research, Development, and Demonstration 
             Fund, which is derived from a portion of electric utility 
             rates.
                









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             Existing law makes many projects eligible under the program, 
             including funding for alternative and renewable fuel 
             infrastructure, fueling stations, and equipment and programs 
             to provide funding for homeowners who purchase a plug-in 
             electric vehicle to offset costs associated with modifying 
             electrical sources to include a residential plug-in electric 
             vehicle charging stations.
                 
             3)Investment Plan  .  The CEC, through a competitive process, 
             allocates funds to alternative fuel and vehicle technology 
             projects.  To set priorities for the allocation of funds, 
             the CEC develops an investment plan in consultation with a 
             wide array of stakeholders.  In February of this year the 
             CEC released a draft of its plan for the 2011-12 fiscal 
             year.  The draft plan proposes allocating $8 million for 
             plug-in electric vehicle charging infrastructure, including 
             $1 million for "projects that will support the streamlining 
             of permitting, installation, and inspection of residential 
             charging infrastructure."  According to the draft plan:
                
                  The permitting, installation, and inspection of 
                  residential charging infrastructure needs to be 
                  seamless.  The process will vary for each community 
                  and for each installation, but on the whole, it is 
                  complex, costly, and protracted.  The average 
                  residential installation time between ordering and 
                  installing charging equipment can be more than four 
                  weeks.  Although the actual charging panels may 
                  take only a few hours to install, the entire 
                  process depends on a series of site visits 
                  including the utility company, licensed 
                  electrician, city permitting office, and city 
                  building inspector.  Regions are currently 
                  brainstorming to find ways to streamline the 
                  process and reduce the time for installation.  It 
                  is also important to provide education to local 
                  government jurisdictions that often lack knowledge 
                  about the permitting process for PEV charging 
                  infrastructure and provide assistance to permit and 
                  inspection offices facing workforce reductions.
                  
                  The plan also states that the makers of electric 
                  vehicles are very interested in simplifying and 









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                  streamlining this process and recommend a national 
                  installation process.  Local government 
                  jurisdictions often lack knowledge about the 
                  permitting process for vehicle charging, and many 
                  permit and inspection offices face workforce 
                  reductions due to declining budgets, thus 
                  exasperating the problem of timely permitting.  
                  Additionally, potential electric vehicle owners 
                  will need assistance in determining the electrical 
                  suitability of their residence or commercial 
                  structure to accommodate the installation of a 
                  charging system.  To facilitate the rollout of 
                  electric vehicles in the next few years, these 
                  complex installation challenges must be addressed.

            4)Previous Legislation  .  SB 1340 (Kehoe) Chapter 649, Statutes 
             of 2010, expands the use of the voluntary contractual 
             assessment to finance electric vehicle charging 
             infrastructure affixed on real property and expands the 
             Property Assessed Clean Energy Reserve program to assist 
             local jurisdictions in financing the installation of 
             infrastructure. 
              
             5)Previous Committee Hearing  .  SB 730 was approved by the 
             Senate Transportation and Housing Committee on March 29, 
             2011 (5-3).
              
             6)Amendments  .  Because of the complexities of permitting 
             electric vehicle charging equipment, as well as the need to 
             ensure that the electric vehicle infrastructure on the whole 
             is established and encouraged in a way that is safe, 
             effective and sustainable for the long-term, SB 730 should 
             be amended to just require the development and 
             implementation of a pilot program on this issue. 
              
              The pilot program should address not just the quick and 
              efficient permitting of charging equipment, but look at 
              what other measures might need to be taken to assist local 
              governments to make certain they have the information and 
              tools they need so installation and operation of electric 
              vehicle charging infrastructure efficient safe, reliable 
              and sustainable. With coordination by CEC, the pilot should 
              also include participants that represent both urban and 









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              rural local governments, public and private utilities, and 
              other participants that can bring expertise to the issue.

            SOURCE  :        Senator Kehoe  

           SUPPORT  :       Plug In America  

           OPPOSITION  :    City of Lakewood