Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1005

Introduced by Assembly Members Gordon and Levine

(Coauthors: Assembly Members Patterson and Wilk)

February 26, 2015

An act begin insert to amend Sections 740.2, 740.3, and 740.8 of the Public Utilities Code, end insert relating to electric vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 1005, as amended, Gordon. Electric vehicles: begin insert infrastructure: end insert charging systems.

Existing law, the Electric Vehicle Charging Stations Open Access Act, prohibits the charging of a subscription fee on persons desiring to use an electric vehicle charging station, as defined, that requires payment of a fee and prohibits a requirement for persons to obtain membership in any club, association, or organization as a condition of using the station, except as specified.

This bill would state the intent of the Legislature to begin delete enact legislation to end delete encourage and support the widespread deployment of electric vehicles, protect competitive markets for electric vehicle charging equipment and network charging services from unfair competition, support consumer choice, and encourage and support private investment in the equipment and services, and would make legislative findings and declarations in that regard.

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Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, the State Air Resources Board, electrical corporations, and the motor vehicle industry, to evaluate policies to develop infrastructure sufficient to overcome any barriers to the widespread deployment and use of plug-in hybrid and electric vehicles and, by July 1, 2011, to adopt rules that address specified matter.

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This bill would delete the requirement that the Public Utilities Commission adopt the rules by July 1, 2011, and instead require the commission to adopt the rules as needed.

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Existing law requires the Public Utilities Commission, in cooperation with the State Energy Resources Conservation and Development Commission, the State Air Resources Board, air quality management districts and air pollution control districts, electrical and gas corporations, and the motor vehicle industry, to evaluate and implement policies to promote the development of equipment and infrastructure needed to facilitate the use of electricity to power and natural gas to fuel low-emission vehicles. The Public Utilities Commission is required to consider certain matters in evaluating and implementing its policies authorizing utilities to develop equipment and infrastructure needed for electric-powered and natural gas-fueled low-emission vehicles and to ensure that those policies ensure that the costs and expenses of utility programs are not passed through to electric or gas ratepayers unless the commission finds and determines that those programs are in the ratepayers’ interest. Existing law defines what is in the “interests” of ratepayers for this purpose. Existing law further requires the commission’s policies authorizing utilities to develop equipment and infrastructure needed for electric-powered and natural gas-fueled low-emission vehicles ensure that utilities do not unfairly compete with nonutility enterprises.

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This bill would require the Public Utilities Commission, when evaluating and implementing its policies authorizing utilities to develop equipment and infrastructure needed for electric-powered and natural gas-fueled low-emission vehicles, to additionally consider (1) authorizing electrical corporations to rate-base make-ready infrastructure needed to support and encourage investment in electric vehicle charging equipment by customers and other providers of electric vehicle charging services, and (2) authorizing electric corporations to rate-base electric vehicle charging equipment if specified requirements are met. The bill would require that the Public Utilities Commission’s policies to ensure that utilities do not unfairly compete with nonutility enterprises include the policy that an electrical corporation not constrain customer choice for electric vehicle service equipment, as defined, except when providing charging services at sites owned or operated by the electrical corporation for electric vehicles that are owned by the electrical corporation or by employees of the electrical corporation.

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Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

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Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the commission implementing its requirements would be a crime, the bill would impose a state-mandated local program by expanding the application of a crime.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

SECTION 1.  

(a) The Legislature finds and declares all of the
following:

(1) California should encourage the expansion of investment
and usage of electric vehicles to protect the environment, stimulate
economic growth, and improve the quality of life in this state. All
Californians benefit from programs that support more widespread
adoption and usage of electric vehicles.

(2)  begin delete Availability end delete begin insert The availability end insert of electric vehicle charging
correlates directly with the rate of electric vehicle begin delete adoption by the
public. end delete begin insert adoption. end insert In order to reach the goal 1.5 million electric
vehicles in begin delete California, end delete begin insert California by 2025, end insert electric vehicle
consumers need confidence that they can readily access electric
vehicle charging services at home, at the workplace, and at public
locations.

(3) “Smart” electric vehicle charging equipment and network
electric vehicle charging services are available on the begin delete market, end delete
begin insert market end insert and enable the management of electric vehicle charging to
avoid negative impacts on the distribution system, begin delete to end delete coordinate
electric vehicle charging with the operation of the begin delete utility end delete begin insert electrical end insert
grid, and begin delete to end delete minimize costs and maximize benefits to electric
vehicle users and utility ratepayers.

(4) Encouraging private investment in “smart” electric vehicle
charging equipment and network electric vehicle charging services
will facilitate begin delete consumer end delete begin insert customer end insert choice, stimulate innovation and
development of new business models, attract private capital
investment, and create jobs for Californians.

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(b) It is the intent of the Legislature to enact legislation to (1)
encourage and support the widespread deployment of electric
vehicles, (2) protect competitive markets for electric vehicle
charging equipment and network charging services from unfair
competition, (3) support consumer choice in electric vehicle
charging equipment and network charging services, and (4)
encourage and support private investment in electric vehicle
charging equipment and network charging services.

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(b) It is the intent of the Legislature to do all the following:

end insert begin insert

(1) Encourage and support the widespread deployment of
electric vehicles.

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(2) Protect competitive markets for electric vehicle charging
equipment and network charging services from unfair competition
by clarifying that electrical corporations may only own electric
vehicle service equipment used to charge electric vehicles owned
by the electrical corporation and its employees, and that electrical
corporations may not provide electric vehicle charging services.

end insert begin insert

(3) Support consumer choice in electric vehicle charging
equipment and network charging services.

end insert begin insert

(4) Encourage and support private investment in electric vehicle
charging equipment and network charging services.

end insert

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begin insert SEC. 2. end insert   

end insert

begin insert Section 740.2 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

740.2.  

The commission, in consultation with the Energy
Commission, State Air Resources Board, electrical corporations,
and the motor vehicle industry, shall evaluate policies to develop
infrastructure sufficient to overcome any barriers to the widespread
deployment and use of plug-in hybrid and electric vehicles. begin delete By
July 1, 2011, the end delete begin insert The end insert commission shall adopt rules begin insert , as necessary, end insert
to address all of the following:

(a) The begin delete impacts upon end delete electrical infrastructure, including
infrastructure begin delete upgrades end delete begin insert upgrades, end insert necessary for widespread use
of plug-in hybrid and electric vehicles and the role and
development of public charging infrastructure.

(b) The impact of plug-in hybrid and electric vehicles on grid
stability and the integration of renewable energy resources.

(c) The technological advances that are needed to ensure the
widespread use of plug-in hybrid and electric vehicles and what
role the state should take to support the development of this
technology.

(d) The existing code and permit requirements that will impact
the widespread use of plug-in hybrid and electric vehicles and any
recommended changes to existing legal impediments to the
widespread use of plug-in hybrid and electric vehicles.

(e) The role the state should take to ensure that technologies
employed in plug-in hybrid and electric vehicles work in a
harmonious manner and across service territories.

(f) The impact of widespread use of plug-in hybrid and electric
vehicles on achieving the state’s goals pursuant to the California
Global Warming Solutions Act of 2006 begin delete and renewables portfolio
standard program end delete begin insert (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code) and the California Renewables
Portfolio Standard Program (Article 16 (commencing with Section
399.11) of Chapter 2.3) end insert and what steps should be taken to address
possibly shifting emissions reductions responsibilities from the
transportation sector to the electrical industry.

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begin insert SEC. 3. end insert   

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begin insert Section 740.3 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

740.3.  

(a)  begin insert For purposes of this section, “electric vehicle
charging equipment” means electric vehicle service equipment
and network charging services. end insert

begin insert (b) end insert begin insert   end insert The commission, in cooperation with the begin delete State Energy
Conservation and Development end delete begin insert Energy end insert Commission, the State Air
Resources Board, air quality management districts and air pollution
control districts, begin delete regulated electrical and end delete begin insert electrical corporations, end insert
gas corporations, and the motor vehicle industry, shall evaluate
and implement policies to promote the development of equipment
and infrastructure needed to facilitate the use of begin delete electric end delete begin insert electricity
to end insert power and natural gas to fuel low-emission vehicles. Policies
to be considered shall include begin delete both end delete begin insert all end insert of the following:

(1) The sale-for-resale and the rate-basing of low-emission
vehicles and supporting equipment such as batteries for electric
vehicles and compressor stations for natural gas fueled vehicles.

(2) The development of statewide standards for electric vehicle
charger connections and compressed natural gas vehicle fueling
connections, including installation procedures and technical
assistance to installers.

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(3) Authorizing electrical corporations to rate-base make-ready
infrastructure needed to support and encourage investment in
electric vehicle charging equipment by customers and other
providers of electric vehicle charging services. For these purposes,
“make-ready infrastructure” means electrical infrastructure
installed and owned by an electrical corporation that is required
in order to interconnect and provide electric service to electric
vehicle service equipment, including transformers, utility services
and meters, panels, interconnection equipment, including conduits
and wiring, and associated infrastructure. “Make-ready
infrastructure” does not include electric vehicle service equipment
or network charging services.

end insert begin insert

(4) Authorizing electrical corporations to rate-base electric
vehicle charging equipment if all of the following requirements
are met:

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(A) The equipment is networked.

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(B) The site hosts for the equipment are unconstrained with
respect to choice of technology and services, beyond the
requirement that the equipment be networked.

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(C) The equipment provides electrical grid benefits, such as
demand response.

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(D) The electricity supplied by the equipment is not limited to
utility-owned generation.

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(b)

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begin insert (c) end insert  The commission shall hold public hearings as part of its
effort to evaluate and implement the new policies begin insert and proposals end insert
considered in subdivision begin delete (a), end delete begin insert (b), end insert and shall provide a progress
report to the Legislature by January 30, 1993, and every two years
thereafter, concerning policies on rates, equipment, and
infrastructure implemented by the commission and other state
agencies, federal and local governmental agencies, and private
industry to facilitate the use of begin delete electric end delete begin insert electricity to end insert power and
natural gas to fuel low-emission vehicles.

begin delete

(c)

end delete

begin insert (d) end insert  The commission’s policies authorizing utilities to develop
equipment or infrastructure needed for electric-powered and natural
gas-fueled low-emission vehicles shall begin delete ensure end delete begin insert do both of the
following: end insert

begin insert (1) end insert begin insert   end insert begin insert Ensure end insert that the costs and expenses of those programs are
not passed through to electric or gas ratepayers unless the
commission finds and determines that those programs are in the
ratepayers’ interest. begin delete The commission’s policies shall also ensure end delete

begin insert (2) end insert begin insert   end insert begin insert Ensure end insert that utilities do not unfairly compete with nonutility
enterprises.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 740.8 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

740.8.  

begin insert (a) end insert begin insert   end insert As used in Section 740.3, “interests” of ratepayers,
short- or long-term, mean direct benefits that are specific to
ratepayers in the form of safer, more reliable, or less costly gas or
electrical service, consistent with Section 451, and activities that
benefit ratepayers and that promote energy efficiency, reduction
of health and environmental impacts from air pollution, and
begin delete greenhouse gas end delete emissions begin insert of greenhouse gases end insert related to electricity
and natural gas production and use, and increased use of alternative
fuels.

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(b) The commission’s policies to ensure that utilities do not
unfairly compete with nonutility enterprises pursuant to paragraph
(2) of subdivision (d) of Section 740.3 shall include the policy that
an electrical corporation shall not constrain customer choice for
electric vehicle service equipment, as defined in Section 44268 of
the Health and Safety Code, except when providing charging
services at sites owned or operated by the electrical corporation
for electric vehicles that are owned by the electrical corporation
or by employees of the electrical corporation.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert begin insert

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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