BILL ANALYSIS Ó
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.
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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
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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