BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
SB 626 - Kehoe Hearing Date:
April 21, 2009 S
As Introduced: February 27, 2009 FISCAL B
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DESCRIPTION
Current law requires the California Public Utilities Commission
(CPUC), in cooperation with the California Energy Commission
(CEC) and the California State Air Resources Board (CARB) and
other specified entities to evaluate and implement policies to
promote the development of equipment and infrastructure needed
to facilitate the use of electric power and natural gas to fuel
low-emission vehicles (LEV's).
Current law requires the CEC to facilitate development and
commercialization of ultra low- and zero-emission electric
vehicles and advanced battery technologies, as well as
development of an infrastructure to support maintenance and
fueling of those vehicles in California.
Under current law the CPUC must protect ratepayers and the
interest of ratepayers. Cost and expenses of programs should not
be passed to ratepayers unless those programs are in the
ratepayer's interest.
This bill would require the CPUC, in consultation with the CEC,
CARB as well as other specified entities to develop policies to
develop infrastructure sufficient to overcome any barriers to
the widespread deployment and use of plug-in hybrid and electric
vehicles and, by January 1, 2011, to adopt rules that address
specified matter.
BACKGROUND
The production, marketing, and use of petroleum fuels in
California cause significant degradation of public health and
environmental quality due to the release of air and water
pollutants. Clean alternative fuel sources, such as plug-in
hybrids (PHEVs) and electric vehicles (EVs), have the potential
to considerably reduce the impacts of those pollutants.
Greenhouse gas ("GHG") emissions also pose a serious threat to
the health of California's citizens and the quality of the
environment. California's transportation sector is the leading
source of GHG emissions in the state, contributing over 40
percent of the state's annual GHG emissions.
California law encourages the use of alternative fuels and the
de-carbonization of the transportation sector. Current law
requires that the CEC, in partnership with CARB, and in
consultation with specified state agencies, develop and adopt a
state plan to increase the use of alternative fuels, without
adversely affecting air quality and water quality, or causing
negative health effects. The CEC released a report, "The State
Alternative Fuels Plan," which recommends an increase in the use
of alternative fuels to 20 percent of on-road transportation
fuel use by 2020 and 30 percent by 2030. The report also
recommends the following alternative fuel targets: 9 percent by
2012, 11 percent by 2017, and 26 percent by 2030.
Consistent with reducing GHG emissions and increasing the use of
alternative fuels, the CEC created The Alternative and Renewable
Fuel and Vehicle Technology Program. The program is intended to
increase the use of alternative and renewable fuels and
innovative technologies that will transform California's fuel
and vehicle types to help attain the state's climate change
policies.
The Governor's Executive Order S-01-07, also supports the
efforts being made to reduce GHG emissions. It calls for CARB to
create a Low Carbon Fuel Standard (LCFS) for a reduction of at
least 10 percent of the carbon intensity of California's
transportation fuels by 2020. Furthermore, it directs CARB to
consider initiating a regulatory proceeding to establish and
implement the LCFS. In response, CARB identified the LCFS as an
early action item with a regulation to be adopted and
implemented by 2010.
COMMENTS
1. CPUC is currently investigating electric vehicles - The
CPUC is currently working on a white paper that is
exploring grid compatibility issues relating to plug-in
hybrid and electric vehicles. The CPUC is meeting with
stakeholders to discuss electric system impacts due to the
widespread use of plug-in electric vehicles (PEVs). This
white paper may lead to an Order Instituting a Rulemaking
and subsequent proceeding by the CPUC. Additionally, the
CPUC is also examining PEV issues within the Long Term
Procurement Plan (LTPP) and Smart Grid efforts.
2. Additional Funding - AB 118 (Nunez) authorizes the CEC
to provide, upon appropriation by the Legislature,
approximately $120 million annually as incentives to
specific sectors and projects, including vehicle and
technology groups. Funds have also been allocated to the
CEC through The American Recovery and Reinvestment Act of
2009. These funds may also be an alternative source of
funding for the policies that the CPUC chooses to
institute.
3. Purpose of SB 626 - This bill will help clear up the
uncertainty of how California's electric grid can support
the widespread use of PHEVs and EVs, especially if those
vehicles are used as energy storage devices, and implement
solutions. The cost of the recharging infrastructure in
homes and businesses may also be a barrier to increased
PHEV and EV usage, which this bill can examine and resolve,
if necessary.
4. Double Referred - This bill has been double referred to
the Senate Transportation and Housing Committee.
POSITIONS
Sponsor:
Author
Support:
Nissan North America
Plug In America
Toyota Motor North America, Inc.
Union of Concerned Scientists
Oppose:
None on file
Melissa Macias
SB 626 Analysis
Hearing Date: April 21, 2009