BILL ANALYSIS Ó AB 2323 Page 1 Date of Hearing: May 11, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2323 (Ridley-Thomas) - As Amended April 19, 2016 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|10 - 4 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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