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 SB 730 Page 2 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 SB 730 Page 3 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. SB 730 Page 4 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 SB 730 Page 5 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 SB 730 Page 6 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