Amended in Assembly January 4, 2016

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1005


Introduced by Assembly Members Gordon and Levine

(Coauthors: Assembly Members Patterson and Wilk)

February 26, 2015


An act to amend Sectionsbegin delete 740.2, 740.3, and 740.8 of the Public Utilities Code,end deletebegin insert 14549.2 and 14581 of the Public Resources Code,end insert relating tobegin delete electric vehicles.end deletebegin insert beverage containers, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1005, as amended, Gordon. begin deleteElectric vehicles: infrastructure: charging systems. end deletebegin insertCalifornia Beverage Container Recycling and Litter Reduction Act: market development payments.end insert

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Existing law, the California Beverage Container Recycling and Litter Reduction Act, requires a distributor to pay a redemption payment for every beverage container sold or offered for sale in the state to the Department of Resources Recycling and Recovery for deposit in the California Beverage Container Recycling Fund. Moneys in the fund are continuously appropriated to the department for certain payments, including market development payments. Existing law authorizes the department, until that authorization is repealed on January 1, 2017, to annually expend up to $10,000,000 from the fund to make market development payments to an entity certified by the department as a recycling center, processor, or dropoff or collection program for empty plastic beverage containers that are subsequently washed and processed into flake, pellet, or other form, and made usable for the manufacture of a plastic product, or to a product manufacturer for empty plastic beverage containers that are subsequently washed and processed into flake, pellet, or other form, and used by that product manufacturer to manufacture a product.

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This bill would postpone that repeal until January 1, 2022. By extending the term of a continuous appropriation, this bill would make an appropriation.

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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.

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This bill would state the intent of the Legislature to 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: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

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

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 14549.2 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
2amended to read:end insert

3

14549.2.  

(a) For purposes of this section, the following
4definitions shall apply:

5(1) “Certified entity” means a recycling center, processor, or
6dropoff or collection program certified pursuant to this division.

7(2) “Product manufacturer” meansbegin delete anyend deletebegin insert aend insert person who
8manufactures a plastic product in this state.

9(b) In order to develop California markets for empty plastic
10beverage containers collected for recycling in the state, the
11department may, consistent with Section 14581 and subject to the
12availability of funds, pay a market development payment to a
13certified entity or product manufacturer for empty plastic beverage
14containers collected and managed pursuant to this section.

15(c) The department shall make a market development payment
16to a certified entity or product manufacturer in accordance with
17this section, only if the plastic beverage container is collected and
18either recycled or used in manufacturing, in the state, as follows:

19(1) The department shall make a market development payment
20to a certified entity for empty plastic beverage containers that are
21collected for recycling in the state, that are subsequently washed
22and processed by a certified entity into a flake, pellet, or other
23form in the state, and made usable for the manufacture of a plastic
24product by a product manufacturer.

25(2) The department shall make a market development payment
26to a product manufacturer for empty plastic beverage containers
27that are collected for recycling in the state, that are subsequently
28washed and processed into a flake, pellet or other form in the state,
29and used by that product manufacturer to manufacture a product
30in this state.

31(3) The department shall determine the amount of the market
32development payment, which may be set at a different level for a
33certified entity and a product manufacturer, but shall not exceed
P5    1one hundred fifty dollars ($150) per ton. In setting the amount of
2the market development payment for both certified entities and
3product manufacturers, the department shall consider all of the
4following:

5(A) The minimum funding level needed to encourage the in-state
6washing and processing of empty plastic beverage containers
7collected for recycling in this state.

8(B) The minimum funding level needed to encourage the in-state
9manufacturing that utilizes empty plastic beverage containers
10collected for recycling in this state.

11(C) The total amount of funds projected to be available for
12plastic market development payments and the desire to maintain
13the minimum funding level needed throughout the year.

14(4) The department may make a market development payment
15to both a certified entity and a product manufacturer for the same
16empty plastic beverage container.

17(d) This section shall remain in effect only until January 1,begin delete 2017,end delete
18begin insert 2022,end insert and as of that date is repealed, unless a later enacted statute,
19that is enacted before January 1,begin delete 2017,end deletebegin insert 2022,end insert deletes or extends
20that date.

21begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 14581 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
22amended to read:end insert

23

14581.  

(a) Subject to the availability of funds and in
24accordance with subdivision (b), the department shall expend the
25moneys set aside in the fund, pursuant to subdivision (c) of Section
2614580, for the purposes of this section in the following manner:

27(1) For each fiscal year, the department may expend the amount
28necessary to make the required handling fee payment pursuant to
29Section 14585.

30(2) Fifteen million dollars ($15,000,000) shall be expended
31annually for payments for curbside programs and neighborhood
32dropoff programs pursuant to Section 14549.6.

33(3) (A) Ten million five hundred thousand dollars ($10,500,000)
34 may be expended annually for payments of five thousand dollars
35($5,000) to cities and ten thousand dollars ($10,000) for payments
36to counties for beverage container recycling and litter cleanup
37activities, or the department may calculate the payments to counties
38and cities on a per capita basis, and may pay whichever amount
39is greater, for those activities.

P6    1(B) Eligible activities for the use of these funds may include,
2but are not necessarily limited to, support for new or existing
3curbside recycling programs, neighborhood dropoff recycling
4programs, public education promoting beverage container
5recycling, litter prevention, and cleanup, cooperative regional
6efforts among two or more cities or counties, or both, or other
7beverage container recycling programs.

8(C) These funds shall not be used for activities unrelated to
9beverage container recycling or litter reduction.

10(D) To receive these funds, a city, county, or city and county
11shall fill out and return a funding request form to the department.
12The form shall specify the beverage container recycling or litter
13reduction activities for which the funds will be used.

14(E) The department shall annually prepare and distribute a
15funding request form to each city, county, or city and county. The
16form shall specify the amount of beverage container recycling and
17litter cleanup funds for which the jurisdiction is eligible. The form
18shall not exceed one double-sided page in length, and may be
19submitted electronically. If a city, county, or city and county does
20not return the funding request form within 90 days of receipt of
21the form from the department, the city, county, or city and county
22is not eligible to receive the funds for that funding cycle.

23(F) For the purposes of this paragraph, per capita population
24shall be based on the population of the incorporated area of a city
25or city and county and the unincorporated area of a county. The
26department may withhold payment to any city, county, or city and
27county that has prohibited the siting of a supermarket site, caused
28a supermarket site to close its business, or adopted a land use policy
29that restricts or prohibits the siting of a supermarket site within its
30jurisdiction.

31(4) One million five hundred thousand dollars ($1,500,000) may
32be expended annually in the form of grants for beverage container
33recycling and litter reduction programs.

34(5) (A) The department shall expend the amount necessary to
35pay the processing payment established pursuant to Section 14575.
36The department shall establish separate processing fee accounts
37in the fund for each beverage container material type for which a
38processing payment and processing fee are calculated pursuant to
39Section 14575, or for which a processing payment is calculated
40pursuant to Section 14575 and a voluntary artificial scrap value is
P7    1calculated pursuant to Section 14575.1, into which account shall
2be deposited both of the following:

3(i) All amounts paid as processing fees for each beverage
4container material type pursuant to Section 14575.

5(ii) Funds equal to the difference between the amount in clause
6(i) and the amount of the processing payments established in
7subdivision (b) of Section 14575, and adjusted pursuant to
8paragraph (2) of subdivision (c) of, and subdivision (f) of, Section
914575, to reduce the processing fee to the level provided in
10subdivision (e) of Section 14575, or to reflect the agreement by a
11willing purchaser to pay a voluntary artificial scrap value pursuant
12to Section 14575.1.

13(B) Notwithstanding Section 13340 of the Government Code,
14the moneys in each processing fee account are hereby continuously
15appropriated to the department for expenditure without regard to
16fiscal years, for purposes of making processing payments pursuant
17to Section 14575.

18(6) Up to five million dollars ($5,000,000) may be annually
19expended by the department for the purposes of undertaking a
20statewide public education and information campaign aimed at
21promoting increased recycling of beverage containers.

22(7) Up to ten million dollars ($10,000,000) may be expended
23annually by the department for quality incentive payments for
24empty glass beverage containers pursuant to Section 14549.1.

25(8) (A) Up to ten million dollars ($10,000,000) may be
26expended annually by the department for market development
27payments for empty plastic beverage containers pursuant to Section
2814549.2, until January 1,begin delete 2017.end deletebegin insert 2022.end insert

29(B) In addition to the amount specified in subparagraph (A),
30the department may expend the amount calculated pursuant to
31subparagraph (C) for market development payments for empty
32plastic beverage containers pursuant to Section 14549.2.

33(C) The department shall calculate the amount authorized for
34expenditure pursuant to subparagraph (B) in the following manner:

35(i) The department shallbegin insert annuallyend insert determine, on or before
36January 1,begin delete 2012, and annually thereafter,end delete whether the amount of
37funds estimated to be necessary pursuant to clause (ii) of
38subparagraph (A) of paragraphbegin delete (6)end deletebegin insert (5)end insert for deposit to a processing
39fee account established by the department for plastic beverage
40containers to make processing payments for plastic beverage
P8    1containers for the current calendar year is less than the total amount
2of funds that were estimated to be necessary the previous calendar
3year pursuant to clause (ii) of subparagraph (A) of paragraphbegin delete (6)end delete
4begin insert (5)end insert for deposit to that processing fee account.

5(ii) If the amount estimated to be necessary for the current
6calendar year, as specified in clause (i), is less than the amount
7estimated to be necessary for the previous calendar year, the
8department shall calculate the amount of that difference.

9(iii) The department shall expend an amount that is not greater
10than 50 percent of the amount calculated pursuant to clause (ii)
11for purposes of subparagraph (B).

12(iv) If the department determines that the amount of funds
13authorized for expenditure pursuant to this subparagraph is not
14needed to make plastic market development payments pursuant to
15subparagraph (B) in the calendar year for which that amount is
16allocated, the department may expend those funds during the
17following year.

18(v) If the department determines that there are insufficient funds
19to both make the market development payments pursuant to
20subparagraph (B) and to deposit the amount required by clause (ii)
21of subparagraph (A) of paragraphbegin delete (6),end deletebegin insert (5),end insert for purposes of making
22the processing payments and reducing the processing fees pursuant
23to Section 14575 for plastic beverage containers, the department
24shall suspend the implementation of this subparagraph and
25subparagraph (B).

26(D) Subparagraphs (B) and (C) shall remain operative only until
27January 1,begin delete 2017.end deletebegin insert 2022.end insert

28(b) (1) If the department determines, pursuant to a review made
29pursuant to Section 14556, that there may be inadequate funds to
30pay the payments required by this division, the department shall
31immediately notify the appropriate policy and fiscal committees
32of the Legislature regarding the inadequacy.

33(2) On or before 180 days, but not less than 80 days, after the
34notice is sent pursuant to paragraph (1), the department may reduce
35or eliminate expenditures, or both, from the funds as necessary,
36according to the procedure set forth in subdivision (c).

37(c) If the department determines that there are insufficient funds
38to make the payments specified pursuant to this section and Section
3914575, the department shall reduce all payments proportionally.

P9    1(d) begin deletePrior to end deletebegin insertBefore end insertmaking an expenditure pursuant to paragraph
2begin delete (6)end deletebegin insert (5)end insert of subdivision (a), the department shall convene an advisory
3committee consisting of representatives of the beverage industry,
4beverage container manufacturers, environmental organizations,
5the recycling industry, nonprofit organizations, and retailers to
6advise the department on the most cost-effective and efficient
7method of the expenditure of the funds for that education and
8information campaign.

9(e) Subject to the availability of funds, the department shall
10retroactively pay in full any payments provided in this section that
11have been proportionally reduced during the period of January 1,
122010, through June 30, 2010.

begin delete
13

SECTION 1.  

(a) The Legislature finds and declares all of the
14following:

15(1) California should encourage the expansion of investment
16and usage of electric vehicles to protect the environment, stimulate
17economic growth, and improve the quality of life in this state. All
18Californians benefit from programs that support more widespread
19adoption and usage of electric vehicles.

20(2) The availability of electric vehicle charging correlates
21directly with the rate of electric vehicle adoption. In order to reach
22the goal 1.5 million electric vehicles in California by 2025, electric
23vehicle consumers need confidence that they can readily access
24electric vehicle charging services at home, at the workplace, and
25at public locations.

26(3) “Smart” electric vehicle charging equipment and network
27electric vehicle charging services are available on the market and
28enable the management of electric vehicle charging to avoid
29negative impacts on the distribution system, coordinate electric
30vehicle charging with the operation of the electrical grid, and
31minimize costs and maximize benefits to electric vehicle users and
32utility ratepayers.

33(4) Encouraging private investment in “smart” electric vehicle
34charging equipment and network electric vehicle charging services
35will facilitate customer choice, stimulate innovation and
36development of new business models, attract private capital
37investment, and create jobs for Californians.

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

39(1) Encourage and support the widespread deployment of electric
40vehicles.

P10   1(2) Protect competitive markets for electric vehicle charging
2equipment and network charging services from unfair competition
3by clarifying that electrical corporations may only own electric
4vehicle service equipment used to charge electric vehicles owned
5by the electrical corporation and its employees, and that electrical
6corporations may not provide electric vehicle charging services.

7(3) Support consumer choice in electric vehicle charging
8equipment and network charging services.

9(4) Encourage and support private investment in electric vehicle
10charging equipment and network charging services.

11

SEC. 2.  

Section 740.2 of the Public Utilities Code is amended
12to read:

13

740.2.  

The commission, in consultation with the Energy
14Commission, State Air Resources Board, electrical corporations,
15and the motor vehicle industry, shall evaluate policies to develop
16infrastructure sufficient to overcome any barriers to the widespread
17deployment and use of plug-in hybrid and electric vehicles. The
18commission shall adopt rules, as necessary, to address all of the
19following:

20(a) The electrical infrastructure, including infrastructure
21 upgrades, necessary for widespread use of plug-in hybrid and
22electric vehicles and the role and development of public charging
23infrastructure.

24(b) The impact of plug-in hybrid and electric vehicles on grid
25stability and the integration of renewable energy resources.

26(c) The technological advances that are needed to ensure the
27widespread use of plug-in hybrid and electric vehicles and what
28role the state should take to support the development of this
29technology.

30(d) The existing code and permit requirements that will impact
31the widespread use of plug-in hybrid and electric vehicles and any
32recommended changes to existing legal impediments to the
33widespread use of plug-in hybrid and electric vehicles.

34(e) The role the state should take to ensure that technologies
35employed in plug-in hybrid and electric vehicles work in a
36harmonious manner and across service territories.

37(f) The impact of widespread use of plug-in hybrid and electric
38vehicles on achieving the state’s goals pursuant to the California
39Global Warming Solutions Act of 2006 (Division 25.5
40(commencing with Section 38500) of the Health and Safety Code)
P11   1and the California Renewables Portfolio Standard Program (Article
216 (commencing with Section 399.11) of Chapter 2.3) and what
3steps should be taken to address possibly shifting emissions
4reductions responsibilities from the transportation sector to the
5electrical industry.

6

SEC. 3.  

Section 740.3 of the Public Utilities Code is amended
7to read:

8

740.3.  

(a) For purposes of this section, “electric vehicle
9charging equipment” means electric vehicle service equipment
10and network charging services.

11(b) The commission, in cooperation with the Energy
12 Commission, the State Air Resources Board, air quality
13management districts and air pollution control districts, electrical
14corporations, gas corporations, and the motor vehicle industry,
15shall evaluate and implement policies to promote the development
16of equipment and infrastructure needed to facilitate the use of
17electricity to power and natural gas to fuel low-emission vehicles.
18Policies to be considered shall include all of the following:

19(1) The sale-for-resale and the rate-basing of low-emission
20vehicles and supporting equipment such as batteries for electric
21vehicles and compressor stations for natural gas fueled vehicles.

22(2) The development of statewide standards for electric vehicle
23charger connections and compressed natural gas vehicle fueling
24connections, including installation procedures and technical
25assistance to installers.

26(3) Authorizing electrical corporations to rate-base make-ready
27infrastructure needed to support and encourage investment in
28electric vehicle charging equipment by customers and other
29providers of electric vehicle charging services. For these purposes,
30“make-ready infrastructure” means electrical infrastructure installed
31and owned by an electrical corporation that is required in order to
32interconnect and provide electric service to electric vehicle service
33equipment, including transformers, utility services and meters,
34panels, interconnection equipment, including conduits and wiring,
35and associated infrastructure. “Make-ready infrastructure” does
36not include electric vehicle service equipment or network charging
37services.

38(4) Authorizing electrical corporations to rate-base electric
39vehicle charging equipment if all of the following requirements
40are met:

P12   1(A) The equipment is networked.

2(B) The site hosts for the equipment are unconstrained with
3respect to choice of technology and services, beyond the
4requirement that the equipment be networked.

5(C) The equipment provides electrical grid benefits, such as
6demand response.

7(D) The electricity supplied by the equipment is not limited to
8utility-owned generation.

9(c) The commission shall hold public hearings as part of its
10effort to evaluate and implement the new policies and proposals
11considered in subdivision (b), and shall provide a progress report
12to the Legislature by January 30, 1993, and every two years
13thereafter, concerning policies on rates, equipment, and
14infrastructure implemented by the commission and other state
15agencies, federal and local governmental agencies, and private
16industry to facilitate the use of electricity to power and natural gas
17to fuel low-emission vehicles.

18(d) The commission’s policies authorizing utilities to develop
19equipment or infrastructure needed for electric-powered and natural
20gas-fueled low-emission vehicles shall do both of the following:

21(1) Ensure that the costs and expenses of those programs are
22not passed through to electric or gas ratepayers unless the
23commission finds and determines that those programs are in the
24ratepayers’ interest.

25(2) Ensure that utilities do not unfairly compete with nonutility
26enterprises.

27

SEC. 4.  

Section 740.8 of the Public Utilities Code is amended
28to read:

29

740.8.  

(a) As used in Section 740.3, “interests” of ratepayers,
30short- or long-term, mean direct benefits that are specific to
31ratepayers in the form of safer, more reliable, or less costly gas or
32electrical service, consistent with Section 451, and activities that
33benefit ratepayers and that promote energy efficiency, reduction
34of health and environmental impacts from air pollution, and
35emissions of greenhouse gases related to electricity and natural
36gas production and use, and increased use of alternative fuels.

37(b) The commission’s policies to ensure that utilities do not
38unfairly compete with nonutility enterprises pursuant to paragraph
39(2) of subdivision (d) of Section 740.3 shall include the policy that
40an electrical corporation shall not constrain customer choice for
P13   1electric vehicle service equipment, as defined in Section 44268 of
2the Health and Safety Code, except when providing charging
3services at sites owned or operated by the electrical corporation
4for electric vehicles that are owned by the electrical corporation
5or by employees of the electrical corporation.

6

SEC. 5.  

No reimbursement is required by this act pursuant to
7Section 6 of Article XIII B of the California Constitution because
8the only costs that may be incurred by a local agency or school
9district will be incurred because this act creates a new crime or
10infraction, eliminates a crime or infraction, or changes the penalty
11for a crime or infraction, within the meaning of Section 17556 of
12the Government Code, or changes the definition of a crime within
13the meaning of Section 6 of Article XIII B of the California
14Constitution.

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