BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 859
                                                                  Page  1

          Date of Hearing:   June 28, 2011

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                     SB 859 (Padilla) - As Amended:  May 31, 2011

                              As Proposed to be Amended

           SENATE VOTE  :   35-3
           
          SUBJECT  :  DMV RECORDS: ELECTRIC VEHICLES 

           KEY ISSUE  :  SHOULD ELECTRIC UTILITIES HAVE LIMITED ACCESS TO DMV 
          VEHICLE RECORDS REGARDING THE LOCATION OF ELECTRIC VEHICLES SO 
          THAT THEY CAN MAKE NECESSARY PLANS FOR INCREASED GRID DEMAND 
          ASSOCIATED WITH HOME CHARGING OF PLUG-IN ELECTRIC VEHICLES WITH 
          APPROPRIATE PRIVACY PROTECTIONS?

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS

          Under existing law, residence address information in Department 
          of Motor Vehicles' (DMV) records is confidential and may not be 
          disclosed to any person except to a court, law enforcement or 
          other government agency, or if the disclosure is subject to 
          certain exemptions.  This bill would allow confidential home 
          address information in DMV records to be disclosed to an 
          electrical corporation or public utility if the utility, under 
          penalty of perjury, requests and uses the information only for 
          the limited purpose of identifying where electric vehicles are 
          located so that the utility can make appropriate adjustment for 
          the distribution of power in the hoped-for event that plug-in 
          electric vehicles become more common in coming years.  The bill 
          has no opposition.

           SUMMARY  :  Provides limited access to electric vehicle records.  
          Specifically,  this bill  allows the DMV to disclose confidential 
          home address information to an electrical corporation or public 
          utility if the utility or its agent, under penalty of perjury, 
          requests and uses the information only for specified purposes 
          and without using or revealing the name of the electric vehicle 
          owner or utility customer.

           EXISTING LAW  :  








                                                                 SB 859
                                                                  Page  2

           
          1)Provides that all people have inalienable rights, including 
            the right to pursue and obtain privacy.  (Cal. Const. art. I, 
            sec. 1.)

          2)Provides that any residence address in DMV records is 
            confidential and shall not be disclosed to any person except a 
            court, law enforcement or other government agency, or as 
            specified in Vehicle Code Sections 1808.22 and 1808.23.  (Veh. 
            Code Sec. 1808.21.)

          3)Provides that residential addresses may be disclosed to a 
            vehicle manufacturer if the manufacturer or its agent, under 
            penalty of perjury, requests and uses the information only for 
            the purpose of safety, warranty, emission, or product recall 
            if the manufacturer offers to make and makes any changes at no 
            cost to the vehicle owner.  (Veh. Code Sec. 1808.23(a).)

          4)Provides that any residential addresses released by DMV may 
            not be used for direct marketing or solicitation for the 
            purchase of any consumer product or service.  (Veh. Code Sec. 
            1808.23(d).)

          5)Requires any person who has access to confidential or 
            restricted DMV information to establish procedures to protect 
            the confidentiality of those records.  Existing law specifies 
            that if any confidential or restricted information is released 
            to any agent of a person authorized to obtain information, the 
            person shall require the agent to take all steps necessary to 
            ensure confidentiality and prevent the release of any 
            information to a third party.  No agent shall obtain or use 
            any confidential or restricted records for any purpose other 
            than the reason the information was requested.  (Veh. Code 
            Sec. 1808.47.)

           COMMENTS  :  Under this bill, electrical corporations or local 
          publicly-owned utilities would be able to obtain home address 
          information for electric vehicle owners from the DMV in order to 
          determine electric vehicle charge points.  The sponsor indicates 
          that this information will help the electrical corporations or 
          local publicly-owned utilities anticipate and plan for increased 
          grid demand associated with home charging of plug-in electric 
          vehicles (PEVs).  The sponsor contends that being able to plan 
          for and accommodate increased electricity demand will help to 
          avert potential grid overload that could result in localized 








                                                                  SB 859
                                                                  Page  3

          outages and rate fluctuations especially given that at least 1 
          million PEVs are anticipated to be in use in California in the 
          next ten years.  


          This bill safeguards PEV owners' privacy by ensuring that the 
          utilities do not use the information obtained from DMV for any 
          marketing purposes; that electric vehicle owners are notified 
          that their residence information is required by law to be shared 
          with electrical corporations or local publicly-owned utilities; 
          and that electrical corporations or local publicly-owned 
          utilities are precluded from selling, sharing, or further 
          disclosing residence information of electric vehicle owners.  


          In support of the bill, the author writes: 

            Over the next ten years at least 1 million PEVs are expected 
            to hit the road in California. As PEVs enter California 
            markets, utilities, municipal governments, PEV charging 
            service providers, and other organizations are working 
            together on infrastructure rollouts to support charging at 
            homes and in public, and to ensure that PEV charging 
            integrates smoothly into the electricity grid.

            ÝT]he deployment of PEVs will place new demands on the state's 
            electric system, but managed properly, that demand can benefit 
            ratepayers and car owners alike.  If that service is not 
            managed efficiently, it will cost all ratepayers in the form 
            of higher electric rates and diminish the environmental 
            benefits of PEVs by increasing greenhouse gas and other 
            emissions associated with the generation of electricity.  
            However, a well-planned electric vehicle charging 
            infrastructure can ensure that the distribution grid has the 
            capacity necessary to handle the charging of the vehicles and 
            can also shift a significant amount of charging to off-peak 
            times.  The result is that the need for the new building of 
            new power plants is minimized and the utilization of existing 
            plants is increased.

            Regardless of where charging occurs - in public or at home - 
            it is important to avoid adverse impacts on the electricity 
            grid and associated costs for utility customers.  
            Consequently, utilities must actively participate in a 
            data-driven public infrastructure planning process to help 








                                                                  SB 859
                                                                  Page  4

            avoid distribution-level impacts of PEV charging.  To ensure 
            that they have the data necessary to facilitate this planning, 
            a multi-prong strategy is being developed to outreach with 
            owners of PEVs at several different points including time of 
            purchase and when a building permit is pulled to install a PEV 
            charger.  However, there are many ways that a PEV car may come 
            into a new neighborhood including a move by a PEV owner or the 
            purchase of a PEV from a private party.  This bill is 
            necessary to facilitate the tracking of these cars and the 
            potential charging impact on the distribution grid.

          The sponsor, California Electric Transportation Coalition 
          (CalETC), writes that the bill would allow "DMV to provide 
          needed information to utilities for the sole purpose of 
          maintaining grid safety, reliability and efficiency.  The 
          utilities would not be allowed to use the DMV information for 
          any marketing purposes but would have access to essential 
          information that will help to ensure that localized transformer 
          impacts associated with plug-in electric vehicles are addressed 
          prior to adverse consequences, including potential localized 
          outages due to electricity demand increases.  The DMV data is 
          particularly useful as this data is the single most reliable in 
          terms of tracking plug-in electric vehicle sale and resale.  Any 
          and all costs associated with collecting the data will be borne 
          by utilities; these costs are anticipated to be minimal."  

          The sponsor indicates that several electric vehicle 
          manufacturers have entered into a memorandum of understanding 
          with utilities to provide the utilities with the home address 
          information of purchasers of new electric vehicles.  Consumers 
          may opt-out of the sharing of this information.  

           Author's Technical Amendments.   The author wishes to add 
          Assembly Member Blumenfield as a co-author.  In addition, to 
          address drafting errors, the author appropriately proposes the 
          following clarifying amendments:

          (4) An electrical corporation as defined in Section 218 of the 
          Public Utilities Code or a local publicly owned electric utility 
          as defined in Section 224.3 of the Public Utilities Code, if the
          corporation or utility, or its agent, under penalty of perjury, 
          requests and uses the information only for the purposes of 
           identifying where an electric vehicle is registered   
          tracking electric vehicle charging points  . All of the following 
          shall apply to








                                                                  SB 859
                                                                  Page  5

          this paragraph:
             (A) The department may disclose to the electrical corporation 
          or
          local publicly owned utility only the type of vehicle and 
          address of
          the electric vehicle owner. The department shall not disclose 
          the
          name of the electric vehicle owner.
             (B) Within 15 days of receiving residence address information 
          from
          the department pursuant to this section, an electrical 
          corporation or
          local publicly owned utility  shall provide a clear, express
          disclosure to the electric vehicle owner that his or her 
          residence
          address information is required by law to be shared with the
          corporation or utility.  The disclosure shall not contain
          marketing information or a solicitation for the purchase of 
          goods or
          services. 
              (C) Confidential home address  and type of vehicle 
           information of electric vehicle
          owners disclosed pursuant to this paragraph   shall only be used 
          for
          the purpose of identifying where an electric vehicle is 
          registered
          and shall not be used or disclosed for any other purpose, 
          including
          for purposes of identifying the individual or individuals 
          residing at
          the address, or to any other person. 
             (D) The electrical corporation or local publicly owned 
          utility  and its agents  
          shall not sell, share, or further disclose, including to any
          subsidiaries, residence address  or type of vehicle  information 
          of electric vehicle
          owners obtained pursuant to this paragraph  or name information 
          determined 
          by matching residence information against the corporation or 
          utility's customer records  .
             (b) Residential addresses released shall not be used for 
          direct
          marketing or solicitation for the purchase of any consumer 
          product or
          service.








                                                                  SB 859
                                                                  Page  6


           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Electric Transportation Coalition (sponsor)
          California Municipal Utilities Association
          Environmental Defense Fund
          National Resources Defense Council
          Pacific Gas and Electric Company
          Sacramento Municipal Utility District
          San Diego Gas and Electric Company
          Southern California Edison
           
            Opposition 
           
          None on file


           Analysis Prepared by  :    Kevin G. Baker / JUD. / (916) 319-2334