BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 859 (Padilla) Hearing Date: 05/23/2011 Amended: 05/10/2011 Consultant: Mark McKenzie Policy Vote: Pub Saf 6-1; Jud 4-0 _________________________________________________________________ ____ BILL SUMMARY: SB 859 would authorize the Department of Motor Vehicles (DMV) to disclose the address of electric vehicle owners to electrical corporations and local public utilities only for purposes of tracking electric vehicle charging points. This authority would be subject to the following limitations: DMV may only disclose the type of vehicle and address of the owner, but not the owner's name. DMV must provide a disclosure to the owner at the time of vehicle registration stating that his or her address will be shared with electric utilities. The address information will only be used to identify where an electric vehicle is registered, and not for any other reason. The electric utility would be prohibited from selling, sharing, or disclosing the address information. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund DMV disclosures over $150 over $300 over $300 Special* _____________ * Motor Vehicle Account _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Existing law requires all residence address information in DMV records confidential and may not be disclosed to any person except a court, law enforcement, or other governmental agency. Existing law provides exceptions to this requirement for insurance companies seeking accident information, vehicle manufacturers issuing safety and warranty information, vehicle dealers for purposes of completing registration transactions, SB 859 (Padilla) Page 1 and for specified statistical research purposes. DMV has records for approximately 93,000 electric vehicles currently registered in California. SB 859 would allow electric vehicle owners' residence address information in DMV records to be disclosed to an electrical corporation or a local publicly owned utility for purposes of tracking vehicle charging points, as specified. The bill is intended to provide electric utilities with an additional information tool to address impacts to electrical grid safety, reliability, and efficiency prior to any adverse consequences. Specifically, the bill would provide utilities with a tool to monitor and plan for increased demands to electrical distribution systems as more electric vehicle charging stations are installed. This bill requires DMV to provide disclosure at the time of registration to electric vehicle owners that their residence address information is required by law to be shared with electric corporations and public utilities. The current language would require this disclosure to be provided at each annual registration, including initial and renewal transactions, as well as transfers of ownership. DMV indicates that there is no additional room on the front or back of billing notices or application forms to include the disclosure, and billing envelopes already include the maximum of three mandatory inserts. Segregating out this specific population of electric vehicle owners and flagging their records with DMV's antiquated computer systems presents other challenges. Staff estimates that DMV programming costs to identify these records could be over $250,000. The addition of this disclosure would result in increased postage costs, and adding a page to the billing notice would also come at a substantial cost of well over $100,000. If DMV determined that programming changes are infeasible, they would likely find it more cost efficient to simply include the disclosure in all vehicle registration notices, thereby increasing printing and postage costs even more. Either route is likely to result in substantial costs to DMV, likely in excess of $300,000. Staff recommends an amendment to require DMV to send an annual disclosure to owners of electric vehicles, rather than requiring the disclosure at the time of registration. DMV indicates that the increased flexibility of this approach would reduce costs to SB 859 (Padilla) Page 2 approximately $60,000 annually. Staff notes, however, that the provision to require disclosure at the time of registration, among other protections, was amended into the bill in the Senate Judiciary Committee due to privacy concerns. The author and Committee may wish to consider whether an annual notice that is not tied to vehicle registration provides sufficient protections without violating the will of the policy committee. It should be noted that the bill prohibits the release of a vehicle owner's name with the address, and that existing regulations authorize DMV to release confidential address information without disclosure to a vehicle owner under specified circumstances.