BILL NUMBER: AB 1005 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 4, 2016
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Members Gordon and Levine
(Coauthors: Assembly Members Patterson and Wilk)
FEBRUARY 26, 2015
An act to amend Sections 740.2, 740.3, and 740.8 of the
Public Utilities Code, 14549.2 and 14581 of the
Public Resources Code, relating to electric vehicles.
beverage containers, and making an appropriation
therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1005, as amended, Gordon. Electric vehicles:
infrastructure: charging systems. California Beverage
Container Recycling and Litter Reduction Act: market development
payments.
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authorizes the department, until that authorization is repealed on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.
This bill would postpone that repeal until January 1, 2022. By
extending the term of a continuous appropriation, this bill would
make an appropriation.
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 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.
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.
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.
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.
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.
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.
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.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14549.2 of the
Public Resources Code is amended to read:
14549.2. (a) For purposes of this section, the following
definitions shall apply:
(1) "Certified entity" means a recycling center, processor, or
dropoff or collection program certified pursuant to this division.
(2) "Product manufacturer" means any a
person who manufactures a plastic product in this state.
(b) In order to develop California markets for empty plastic
beverage containers collected for recycling in the state, the
department may, consistent with Section 14581 and subject to the
availability of funds, pay a market development payment to a
certified entity or product manufacturer for empty plastic beverage
containers collected and managed pursuant to this section.
(c) The department shall make a market development payment to a
certified entity or product manufacturer in accordance with this
section, only if the plastic beverage container is collected and
either recycled or used in manufacturing, in the state, as follows:
(1) The department shall make a market development payment to a
certified entity for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed by a certified entity into a flake, pellet, or other
form in the state, and made usable for the manufacture of a plastic
product by a product manufacturer.
(2) The department shall make a market development payment to a
product manufacturer for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed into a flake, pellet or other form in the state, and
used by that product manufacturer to manufacture a product in this
state.
(3) The department shall determine the amount of the market
development payment, which may be set at a different level for a
certified entity and a product manufacturer, but shall not exceed one
hundred fifty dollars ($150) per ton. In setting the amount of the
market development payment for both certified entities and product
manufacturers, the department shall consider all of the following:
(A) The minimum funding level needed to encourage the in-state
washing and processing of empty plastic beverage containers collected
for recycling in this state.
(B) The minimum funding level needed to encourage the in-state
manufacturing that utilizes empty plastic beverage containers
collected for recycling in this state.
(C) The total amount of funds projected to be available for
plastic market development payments and the desire to maintain the
minimum funding level needed throughout the year.
(4) The department may make a market development payment to both a
certified entity and a product manufacturer for the same empty
plastic beverage container.
(d) This section shall remain in effect only until January 1,
2017, 2022, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2017, 2022, deletes or
extends that date.
SEC. 2. Section 14581 of the Public
Resources Code is amended to read:
14581. (a) Subject to the availability of funds and in accordance
with subdivision (b), the department shall expend the moneys set
aside in the fund, pursuant to subdivision (c) of Section 14580, for
the purposes of this section in the following manner:
(1) For each fiscal year, the department may expend the amount
necessary to make the required handling fee payment pursuant to
Section 14585.
(2) Fifteen million dollars ($15,000,000) shall be expended
annually for payments for curbside programs and neighborhood dropoff
programs pursuant to Section 14549.6.
(3) (A) Ten million five hundred thousand dollars ($10,500,000)
may be expended annually for payments of five thousand dollars
($5,000) to cities and ten thousand dollars ($10,000) for payments to
counties for beverage container recycling and litter cleanup
activities, or the department may calculate the payments to counties
and cities on a per capita basis, and may pay whichever amount is
greater, for those activities.
(B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling programs,
public education promoting beverage container recycling, litter
prevention, and cleanup, cooperative regional efforts among two or
more cities or counties, or both, or other beverage container
recycling programs.
(C) These funds shall not be used for activities unrelated to
beverage container recycling or litter reduction.
(D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the department.
The form shall specify the beverage container recycling or litter
reduction activities for which the funds will be used.
(E) The department shall annually prepare and distribute a funding
request form to each city, county, or city and county. The form
shall specify the amount of beverage container recycling and litter
cleanup funds for which the jurisdiction is eligible. The form shall
not exceed one double-sided page in length, and may be submitted
electronically. If a city, county, or city and county does not return
the funding request form within 90 days of receipt of the form from
the department, the city, county, or city and county is not eligible
to receive the funds for that funding cycle.
(F) For the purposes of this paragraph, per capita population
shall be based on the population of the incorporated area of a city
or city and county and the unincorporated area of a county. The
department may withhold payment to any city, county, or city and
county that has prohibited the siting of a supermarket site, caused a
supermarket site to close its business, or adopted a land use policy
that restricts or prohibits the siting of a supermarket site within
its jurisdiction.
(4) One million five hundred thousand dollars ($1,500,000) may be
expended annually in the form of grants for beverage container
recycling and litter reduction programs.
(5) (A) The department shall expend the amount necessary to pay
the processing payment established pursuant to Section 14575. The
department shall establish separate processing fee accounts in the
fund for each beverage container material type for which a processing
payment and processing fee are calculated pursuant to Section 14575,
or for which a processing payment is calculated pursuant to Section
14575 and a voluntary artificial scrap value is calculated pursuant
to Section 14575.1, into which account shall be deposited both of the
following:
(i) All amounts paid as processing fees for each beverage
container material type pursuant to Section 14575.
(ii) Funds equal to the difference between the amount in clause
(i) and the amount of the processing payments established in
subdivision (b) of Section 14575, and adjusted pursuant to paragraph
(2) of subdivision (c) of, and subdivision (f) of, Section 14575, to
reduce the processing fee to the level provided in subdivision (e) of
Section 14575, or to reflect the agreement by a willing purchaser to
pay a voluntary artificial scrap value pursuant to Section 14575.1.
(B) Notwithstanding Section 13340 of the Government Code, the
moneys in each processing fee account are hereby continuously
appropriated to the department for expenditure without regard to
fiscal years, for purposes of making processing payments pursuant to
Section 14575.
(6) Up to five million dollars ($5,000,000) may be annually
expended by the department for the purposes of undertaking a
statewide public education and information campaign aimed at
promoting increased recycling of beverage containers.
(7) Up to ten million dollars ($10,000,000) may be expended
annually by the department for quality incentive payments for empty
glass beverage containers pursuant to Section 14549.1.
(8) (A) Up to ten million dollars ($10,000,000) may be expended
annually by the department for market development payments for empty
plastic beverage containers pursuant to Section 14549.2, until
January 1, 2017. 2022.
(B) In addition to the amount specified in subparagraph (A), the
department may expend the amount calculated pursuant to subparagraph
(C) for market development payments for empty plastic beverage
containers pursuant to Section 14549.2.
(C) The department shall calculate the amount authorized for
expenditure pursuant to subparagraph (B) in the following manner:
(i) The department shall annually determine, on or
before January 1, 2012, and annually thereafter,
whether the amount of funds estimated to be necessary pursuant to
clause (ii) of subparagraph (A) of paragraph (6)
(5) for deposit to a processing fee account established by
the department for plastic beverage containers to make processing
payments for plastic beverage containers for the current calendar
year is less than the total amount of funds that were estimated to be
necessary the previous calendar year pursuant to clause (ii) of
subparagraph (A) of paragraph (6) (5)
for deposit to that processing fee account.
(ii) If the amount estimated to be necessary for the current
calendar year, as specified in clause (i), is less than the amount
estimated to be necessary for the previous calendar year, the
department shall calculate the amount of that difference.
(iii) The department shall expend an amount that is not greater
than 50 percent of the amount calculated pursuant to clause (ii) for
purposes of subparagraph (B).
(iv) If the department determines that the amount of funds
authorized for expenditure pursuant to this subparagraph is not
needed to make plastic market development payments pursuant to
subparagraph (B) in the calendar year for which that amount is
allocated, the department may expend those funds during the following
year.
(v) If the department determines that there are insufficient funds
to both make the market development payments pursuant to
subparagraph (B) and to deposit the amount required by clause (ii) of
subparagraph (A) of paragraph (6), (5),
for purposes of making the processing payments and reducing the
processing fees pursuant to Section 14575 for plastic beverage
containers, the department shall suspend the implementation of this
subparagraph and subparagraph (B).
(D) Subparagraphs (B) and (C) shall remain operative only until
January 1, 2017. 2022.
(b) (1) If the department determines, pursuant to a review made
pursuant to Section 14556, that there may be inadequate funds to pay
the payments required by this division, the department shall
immediately notify the appropriate policy and fiscal committees of
the Legislature regarding the inadequacy.
(2) On or before 180 days, but not less than 80 days, after the
notice is sent pursuant to paragraph (1), the department may reduce
or eliminate expenditures, or both, from the funds as necessary,
according to the procedure set forth in subdivision (c).
(c) If the department determines that there are insufficient funds
to make the payments specified pursuant to this section and Section
14575, the department shall reduce all payments proportionally.
(d) Prior to Before making an
expenditure pursuant to paragraph (6) (5)
of subdivision (a), the department shall convene an advisory
committee consisting of representatives of the beverage industry,
beverage container manufacturers, environmental organizations, the
recycling industry, nonprofit organizations, and retailers to advise
the department on the most cost-effective and efficient method of the
expenditure of the funds for that education and information
campaign.
(e) Subject to the availability of funds, the department shall
retroactively pay in full any payments provided in this section that
have been proportionally reduced during the period of January 1,
2010, through June 30, 2010.
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) The availability of electric vehicle charging correlates
directly with the rate of electric vehicle adoption. In order to
reach the goal 1.5 million electric vehicles in California by 2025,
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 market and
enable the management of electric vehicle charging to avoid negative
impacts on the distribution system, coordinate electric vehicle
charging with the operation of the electrical grid, and 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 customer choice, stimulate innovation and development
of new business models, attract private capital investment, and
create jobs for Californians.
(b) It is the intent of the Legislature to do all the following:
(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 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.
(3) Support consumer choice in electric vehicle charging equipment
and network charging services.
(4) Encourage and support private investment in electric vehicle
charging equipment and network charging services.
SEC. 2. Section 740.2 of the Public Utilities
Code is amended to read:
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. The
commission shall adopt rules, as necessary, to address all of the
following:
(a) The electrical infrastructure, including infrastructure
upgrades, 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 (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) and what steps should be taken to
address possibly shifting emissions reductions responsibilities from
the transportation sector to the electrical industry.
SEC. 3. Section 740.3 of the Public Utilities
Code is amended to read:
740.3. (a) For purposes of this section, "electric vehicle
charging equipment" means electric vehicle service equipment and
network charging services.
(b) The commission, in cooperation with the Energy Commission, the
State Air Resources Board, air quality management districts and air
pollution control districts, electrical corporations, 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 electricity to power
and natural gas to fuel low-emission vehicles. Policies to be
considered shall include all 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.
(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.
(4) Authorizing electrical corporations to rate-base electric
vehicle charging equipment if all of the following requirements are
met:
(A) The equipment is networked.
(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.
(C) The equipment provides electrical grid benefits, such as
demand response.
(D) The electricity supplied by the equipment is not limited to
utility-owned generation.
(c) The commission shall hold public hearings as part of its
effort to evaluate and implement the new policies and proposals
considered in subdivision (b), 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 electricity to power and natural gas to fuel low-emission
vehicles.
(d) The commission's policies authorizing utilities to develop
equipment or infrastructure needed for electric-powered and natural
gas-fueled low-emission vehicles shall do both of the following:
(1) Ensure 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.
(2) Ensure that utilities do not unfairly compete with nonutility
enterprises.
SEC. 4. Section 740.8 of the Public Utilities
Code is amended to read:
740.8. (a) 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 emissions of
greenhouse gases related to electricity and natural gas production
and use, and increased use of alternative fuels.
(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.
SEC. 5. 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.