BILL ANALYSIS                                                                                                                                                                                                    Ó          1





                 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                  ALEX PADILLA, CHAIR
          

          SB 454 -  Corbett                                 Hearing Date:   
          April 30, 2013             S
          As Amended:         April 16, 2013           FISCAL       B
                                                                        
                                                                        4
                                                                        5
                                                                        4

                                       DESCRIPTION
           
           Current law  exempts from the definition of a public utility a  
          facility that supplies electricity to the public only for use to  
          charge light duty plug-in electric vehicles (PEVs). (Public  
          Utilities Code 216)

           Current federal law  requires a manufacturer of an electric vehicle  
          (EV) fuel dispensing system to determine the electric charge of a  
          system and affix a permanent legible marking or permanently  
          attached label that discloses the manufacturer's name, the model  
          number, serial number, or other identifier of the system, and the  
          fuel rating.  (16 CFR 309)

           Current law  requires that 22 percent of the vehicles produced and  
          delivered for sale in California by specified manufacturers be  
          zero emission vehicles by 2025. (Cal. Admin. Code tit. 13, § 1962)

           Current law  requires all new PEVs to be equipped with a conductive  
          charger inlet and charging system which meets all the  
          specifications contained in Society of Automotive Engineers  
          Surface Vehicle Recommended Practice and be equipped with an  
          on-board charger with a minimum specified output. (Cal. Admin.  
          Code tit. 13, § 1962)

           This bill  prohibits the provider of an EV charging station from  
          requiring a subscription or membership as a condition of using the  
          station but permits the payment of a roaming charge with full  
          disclosure at the point of sale and requires that the station  
          accept payment by credit card or mobile technology, or both.   

           This bill  requires that the providers of EV charging stations  











          disclose all charging sites to the California Energy Commission  
          (CEC) and to the public, along with a schedule of fees, accepted  
          methods of payment and the amount of network roaming charges for  
          nonmembers.  The CEC is permitted to release the information to  
          governmental entities, developers of software applications, or the  
          public.

           This bill  permits the CEC to adopt interoperability billing  
          standards for network roaming payment methods and requires  
          providers to meet those standards within one year of adoption.

           This bill  requires the Department of Consumer Affairs (DCA) to  
          maintain a toll-free number, email address or Internet Web site to  
          collect consumer complaints regarding violations by providers of  
          EV charging stations.

           This bill  defines a public parking space.
                                       BACKGROUND
           
          ZEV Executive Order - In 2012 the Governor signed an executive  
          order laying the foundation for 1.5 million zero-emission vehicles  
          (ZEVs) on California's roadways by 2025 which came on the heels of  
          a California Air Resource Board (CARB) mandate on the largest  
          automakers to derive 22 percent of their annual California sales  
          from PEVs and other zero or near-zero emissions vehicles by 2025.

          The Governor's executive order set the following targets:

                 By 2015, all major cities in California will have adequate  
               infrastructure and be ZEV ready;
                 By 2020, the state will have established adequate  
               infrastructure to support 1 million ZEVs in California;
                 By 2025, there will be 1.5 million ZEVs on the road in  
               California; and 
                 By 2050, virtually all personal transportation in the  
               State will be based on ZEVs, and greenhouse gas emissions  
               from the transportation sector will be reduced by 80 percent  
               below 1990 levels.

          As a result of the order an interagency working group was  
          established with oversight by the Governor's Office of Planning  
          and Research (OPR) which released the "2013 Zero-emission Vehicle  
          Action Plan" in February.  The plan identifies specific strategies  
          and actions that state agencies will take to meet the milestones  










          of the executive order focusing on four broad goals to advance  
          ZEVs: complete needed infrastructure and planning; expand consumer  
          awareness and demand; transform fleets; and grow jobs and  
          investment in the private sector.

          The plan acknowledged the unique fueling infrastructure required  
          for ZEVs which is fundamentally different for each vehicle type.   
          "PEV primarily rely on strategically deployed charging stations in  
          a variety of locations including drivers' homes, workplaces, fleet  
          facilities and public places such as parking lots and parking  
          garages. The process of installing PEV charging stations can  
          sometimes be complex, protracted and expensive."  The plan called  
          for the development of interoperability standards for EV charging  
          stations that allow all drivers to charge at a station regardless  
          of membership in a vehicle charging network."

          Related to this bill the OPR action plan specifically calls for  
          (1) requiring that future state-funded PEV charging stations are  
          open to the public and accessible to all PEV drivers regardless of  
          drivers' memberships or subscriptions to electric vehicle supply  
          equipment (EVSE) networks and that industry efforts are encouraged  
          "to develop interoperability standards for EV charging stations  
          that enable PEV drivers to locate and reserve public charging  
          stations and be billed regardless of drivers' memberships or  
          subscriptions to a network of EV chargers."

          CPUC Funded Network - In March 2012 the CPUC announced a $120  
          million dollar settlement with NRG Energy Inc. that will fund the  
          construction of a statewide network of charging stations for ZEVs,  
          including at least 200 public fast-charging stations and another  
          10,000 plug-in units at 1,000 locations across the state. The  
          settlement stemmed from California's energy crisis.  Of  
          significance to this bill is a requirement of NRG that all EV  
          charging stations established under the settlement allow  
          single-use customers to use a "remote credit card swipe reader  
          mechanism."

          Plug-in Electric Vehicle Resource Center - This center is a  
          microsite of the CARB's DriveClean.ca.gov website, developed to  
          provide more in-depth information specifically for PEVs in order  
          to raise awareness and demand for PEVs. The PEV Resource Center  
          was created in partnership with the California Plug-in Electric  
          Vehicle Collaborative. 











          The intent of the website is to be a comprehensive and impartial  
          source of information to help various audience groups better  
          understand plug-in electric drive technology and to provide car  
          buyers with the information they need to purchase and own a PEV.   
          Information and resources are developed to educate a variety of  
          audiences, including consumers, local government officials,  
          policymakers, fleet managers, original equipment manufacturers  
          (OEMs), auto dealers, business owners, electricians, first  
          responders, and the media

          Alternative Fuels Data Center - This website is sponsored by the  
          U.S. Department of Energy and provides information, data, and  
          tools to help fleets and other transportation decision makers find  
          ways to reduce petroleum consumption through the use of  
          alternative and renewable fuels, advanced vehicles, and other  
          fuel-saving measures.  The website includes an Alternative Fueling  
          Station Locator.  Data are gathered and verified through a variety  
          of methods by the National Renewable Energy Laboratory (NREL)  
          which obtains information about new stations from trade media,  
          Clean Cities coordinators, an "Add-a-Station" form on the website,  
          and through collaborating with infrastructure equipment and fuel  
          providers.

                                        COMMENTS
           
              1.   Author's Purpose  .  According to the author, EV charging  
               stations are currently not as convenient as gas stations.   
               The public has access to only a few stations, and these  
               stations offer few payment options.  Most charging stations  
               require a subscription or membership, forcing drivers to buy  
               several memberships and carry them in order to drive longer  
               distances.  The author believes this bill will provide the  
               framework for EV charging stations to operate similarly to  
               gas stations, allowing drivers to use their credit cards or  
               phone to pay for charging.  Facilitating charging will assist  
               the state in achieving its ZEV, greenhouse gas emission  
               reduction, and air pollution reduction goals, as well as  
               reduce the state's dependence on oil.  

              2.   Charging Station Access  .  As the market for PEVs develops  
               there are a handful of different companies which are  
               installing charging stations throughout the state each with  
               different costs and access systems.  The stations tend to be  
               hosted in parking lots at workplaces, retail centers and  










               transportation hubs.  The intent of the author is to ensure  
               that PEV owners can charge their PEV at any public charging  
               station regardless of whether they are a member or a  
               subscriber to a particular company.  

               The bill has two different access standards referenced  
               neither of which may be the most accessible and manageable  
               structure.  The first is "network roaming" (page 4, lines  
               18-21) which is defined as the ability of a subscriber of one  
               charging network to use a charging station network to which  
               they do not subscribe with the same network account  
               information."  This standard would likely require companies  
               to share subscriber information and develop costly  
               integration technologies.  The second access standard is that  
               stations permit a customer to "pay via credit card or mobile  
               technology or both."  This phrase could only require that a  
               customer be able to use a smart phone or a smart phone that  
               can facilitate a credit card transaction.  Although early  
               adopters of PEVs may be tech-savvy and have their smart  
               phones with them at all times and in all places, there are  
               still many consumers who do not carry these technologies.   
               Most PEV charging companies allow a non-member or  
               non-subscribing PEV owner to use their charging station by  
               calling an 800 number and providing a credit card number.  In  
               order to ensure consistency in the bill, the greatest access  
               for the greatest number of car owners, and ease of  
               administration for EV charging station providers, the author  
               and committee may wish to consider striking both standards  
               and instead requiring the use of  accredit card by through an  
               800 number.

              3.   Charging Station Network Oversight  .  This bill requires  
               the provider of an EV charging station that is accessible to  
               the public to disclose to the CEC its location, fees, and  
               payment methods.  The CEC would be authorized to disclose  
               that information to the public, private companies, and the  
               NREL.  The CARB has established a very detailed website  
               (DriveClean.ca.gov) to provide consumers interested in  
               purchasing PEVs and PEV owners with in-depth information  
               including charging access.  The author and committee may wish  
               to consider striking the direction to the CEC and instead  
               requiring data tracking and reporting by CARB which has  
               already established the website and necessary linkages to  
               perform this task.  











               Additionally, the reference to a "provider" of an EV charging  
               station as the responsible reporting party is not clear since  
               it does not distinguish between the operator of the charging  
               network and the host of the station (e.g. an airport or  
               retail store).  The author and committee may wish to consider  
               replacing "provider of an EV charging station" with "provider  
               of EV service equipment" which is the common industry  
               standard in this new market.  To also reflect the standard,  
               "EV service equipment" should also replace "battery charging  
               station." The need for this clarification was raised by the  
               National Electrical Manufacturers Association.  

              4.   Interoperability  .  The CEC is authorized in this bill to  
               develop "interoperability billing standards for network  
               roaming payment methods."  The necessity of this  
               authorization is not clear since the bill establishes an  
               access standard by requiring payment by a credit card or  
               mobile technology or both.  Earlier in the bill  
               "interoperability is defined as the "ability of one charging  
               station network to use another network."  The two different  
               references are confusing.  Nationally the adoption of  
               interoperability standards is underway by the National  
               Electrical Manufacturers Association, National Institute of  
               Science and Technology, and the American National Standards  
               Institute.  Those standards are focused on the equipment  
               necessary for connectivity between the electricity supply  
               point and the charger of electric vehicles.  Lastly, if any  
               standards were appropriate, the CARB has already done a lot  
               of work in this area and adopted regulations affecting PEVs.   
               Given the question of necessity of interoperability since the  
               standard is set in the bill and the confusion between  
               interoperability for fee payment and connectivity, the author  
               and committee may wish to consider striking this provision.

               Absent that change, at a minimum, CARB should be the  
               responsible agency rather than the CEC since CARB has already  
               established itself as the lead agency on PEV regulation.

              5.   Collecting Complaints  .  The bill requires the DCA to  
               collect customer complaints about EV charging stations and  
               make a summary of the complaints available to the public.   
               The bill also authorizes DCA to respond to complaints.  Given  
               the extensive work of CARB to stimulate and manage the EV  










               infrastructure, and its comprehensive "DriveClean.ca.gov"  
               website, the author and committee may wish to consider  
               striking the DCA and adding CARB as the responsible agency.  

              6.   Double Referral  . This bill was approved by the Senate  
               Committee on Transportation and Housing on April 9, 2013, by  
               a vote of 6-3.

                                        POSITIONS
           
           Sponsor:
           
          Plug In America

           Support:
           
          American Planning Association, California Chapter
          Greenlots
          NRG Energy, Inc., if amended
          Sierra Club California
          UCLA Luskin Center for Innovation

           Oppose:
           
          ChargePoint, unless amended
          ECOtality, unless amended
          National Electrical Manufacturers Association, unless amended
          North Bay Nissan


          
























          Kellie Smith 
          SB 454 Analysis
          Hearing Date:  April 30, 2013