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 registeredtracking 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