BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 2323


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          Date of Hearing:  May 11, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2323 (Ridley-Thomas) - As Amended April 19, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill requires electrical corporations that offer  
          time-of-use rates, critical peak pricing, real-time pricing, or  
          peak time rebates for charging electric vehicles to offer  
          similar rates to low-carbon transportation fuel production  
          facilities and fueling stations. 










                                                                    AB 2323


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          Additionally, this bill requires the California Public Utilities  
          Commission (PUC) to consult with the Air Resources Board (ARB)  
          and the California Energy Commission (CEC) to establish  
          accountability measures for facilities that elect to use the  
          rates provided by the bill.


          FISCAL EFFECT:


          1)Increased one-time costs of approximately $190,000 to hold a  
            rulemaking proceeding to extend rates to other qualified  
            entities and adopt performance accountability measures  
            (special fund).


          2)Absorbable costs for CEC and ARB to assist in establishing  
            performance accountability measures.


          COMMENTS:


          1)Purpose.  According to the author, some investor-owned  
            electric utility companies are currently offering, or plan to  
            offer, discount rate programs to electric vehicle users to  
            encourage use and promote the reduction of the state's carbon  
            footprint. The author states that, like electric vehicles, the  
            use of biofuels, hydrogen, and natural gas can play a  
            significant role in advancing the state's air quality and  
            climate change goals.
            This bill provides discounted rates for all eligible  
            low-carbon fuel facilities and fueling stations.


          2)Background. Electrical corporations provide various rate plans  
            for customers, including time-of-use rates, critical peak  
            pricing, retail-time pricing, and peak time rebates,  
            irrespective of whether the customer is using that electricity  








                                                                    AB 2323


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            for charging a vehicle. These rate plans, known as tariffs,  
            are designed in a manner that does not require one class of  
            customer to subsidize another, with the exception of programs  
            designed to support low income customers.  
            


            This bill requires the PUC to ensure the new discounted rates  
            benefit ratepayers, as specified.


          3)State Petroleum Reduction Goals.  In his 2015, Governor Brown  
            announced three new energy goals that would take state clean  
            energy policy beyond 2020:  (1) 50% percent of California's  
            electricity to come from renewable energy sources; (2)  
            reducing by 50%  the amount of petroleum used in cars and  
            trucks; and (3) doubling the energy efficiency of existing  
            buildings, all by 2030.  



          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081