BILL ANALYSIS
SB 626
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Date of Hearing: June 29, 2009
ASSEMBLY COMMITTEE ON TRANSPORTATION
Mike Eng, Chair
SB 626 (Kehoe) - As Amended: May 26, 2009
SENATE VOTE : 30-1
SUBJECT : Electrical infrastructure: plug-in hybrid and
electric vehicles
SUMMARY : Requires the California Public Utilities Commission
(CPUC), in consultation with specified parties, to evaluate
policies to provide fueling infrastructure for plug-in hybrid
and electric vehicles. Specifically, this bill :
1)Requires CPUC, in consultation with the California Energy
Commission (Energy Commission), the California Air Resources
Board (ARB), 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.
2)Requires CPUC, by January 1, 2011, to adopt rules to address
the following:
a) The impacts upon electrical infrastructure, including
infrastructure upgrades necessary for widespread use of
plug-in hybrid and electric vehicles, 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;
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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; and,
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 and
renewables portfolio standard program and what steps should
be taken to address possibly shifting emissions reductions
responsibilities from the transportation sector to the
electrical industry.
EXISTING LAW :
1)Confers to CPUC regulatory authority over public utilities,
including electrical corporations and gas corporations, as
defined.
2)Requires CPUC, in consultation with the Energy Commission,
ARB, the air quality management districts and air pollution
control districts, regulated electrical and natural 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 electric power
and natural gas to fuel low-emission vehicles. Requires CPUC
to report every two years, beginning January 30, 1993, on the
policy it and other agencies implement.
3)Pursuant to AB 118 (Nunez) Chapter 750, Statutes of 2007,
creates the Alternative and Renewable Fuel and Vehicle
Technology Fund, that provides Energy Commission and ARB funds
for alternative fuel infrastructure and air quality
technologies.
4)Authorizes Energy Commission to monitor transportation fuel
supplies and prices in California, including publishing a
biennial integrated energy policy report that examines issues
of supply, demand, and supply reliability for transportation
fuel.
5)Charges ARB with primary responsibility for the control of
mobile source air pollution, including the adoption of rules
for the reduction of harmful vehicle emissions and the
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specification of vehicular fuel composition.
6)Pursuant to AB 32 (Nunez) Chapter 488, Statutes of 2006,
establishes a statewide greenhouse gas emissions limit such
that by 2020, California reduces its greenhouse gas emissions
to the level they were in 1990.
7)Under the California Renewables Portfolio Standard Program,
requires that each California electric utility procure, with
limited exceptions, an annual minimum quantity of electricity
generated from eligible facilities powered by renewable energy
resources. The amount, subject to flexible compliance
provisions, must increase by at least 1% each year, and must
reach 20% of total retail sales by no later than 2010.
8)Requires Energy Commission to develop, implement, and
administer the Public Interest Research, Development, and
Demonstration Program.
FISCAL EFFECT : According to the Senate Appropriations
Committee, costs to complete a proceeding on this issue by
January 2011, is estimated to be about $280,000 over two fiscal
years.
COMMENTS : According to the author, both ARB and the Energy
Commission have been given express powers on reducing emissions
in our fuels (the Low Carbon Fuel Standard) and fostering
development of research and infrastructure (AB 118 [Nunez] - see
above) but the CPUC has not been given express authority to
examine in detail how transforming into an electric vehicle
economy will effect our energy system from grid reliability to
which sources of energy will be used to provide the electricity
for electric and plug-in-electric vehicles. This bill gives the
PUC clear direction on these subjects. The CPUC has prepared a
white paper on the potential barriers and opportunities faced by
the state in developing the infrastructure necessary to
accommodate plug-in hybrid and electric vehicles (PEVs).
Furthermore, the bill will mandate CPUC to take the next step to
administratively adopt rules and policies that support PEV
electrification. Lastly, the committee's suggested amendment
affords CPUC with sufficient time to adopt appropriate rules
through their administrative proceedings.
Purpose : The purpose of this bill is to facilitate the
deployment of plug-in hybrid electric vehicles (PHEVs) to assist
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with reducing greenhouse gas emissions generated by the
transportation sector.
Background : In an electric vehicle, batteries are typically
used to store the electricity that powers the electric motor(s)
in the vehicle. The batteries must be recharged by plugging
into a power source. Some electric vehicles have on-board
chargers. Others need to be plugged into an external charger.
A totally electric vehicle is a zero emission vehicle (ZEV) and
its motor produces no tailpipe exhaust emissions.
In 1990, ARB passed a rule to reduce the pollution from cars.
Beginning in 1998, 2% of all vehicles sold in California would
have to have zero emissions, increasing to 5% in 2001 and 10% in
2003. In 1996, ARB decided to eliminate the "ramp up" but left
in the 10% mandate in 2003.
In April 2003, ARB adopted more changes for vehicles produced in
the 2005 model year. ARB changed the calculation for the
efficiency multiplier and designated criteria for each of the
following five "types" of pure ZEVs:
1)Low-speed neighborhood electric vehicles.
2)Utility low-range battery electric vehicles.
3)Mid-range "city electric vehicles."
4)Full function battery electric vehicles.
5) Fuel cell vehicles.
On March 27, 2008, ARB voted to triple the amount of zero
emission vehicles that staff had proposed for automakers to
produce (from 2012 through 2014), while directing staff to look
at overhauling the program to account for climate change
benefits. Staff had proposed to require 2,500 pure ZEVs, which
ARB increased to 7,500. Automakers can produce fewer ZEVs,
5,357, if they are long-range fuel cell vehicles or they can opt
to satisfy the requirement by manufacturing 12,500 battery
electric vehicles with a range of 100 miles. ARB allows
automakers to offset the number of additional PHEVs during that
same period if they produce 25,000 ZEVs.
Plug-in hybrid vehicles : PHEVs are conventional hybrid vehicles
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with larger battery packs that can be recharged by plugging into
a standard electrical outlet. This allows for much higher
gasoline mileage because the electricity supplements the fuel
use. For example, it could be designed to operate using just
battery power for distances such as 20 miles and then be
recharged by plugging into a standard home power supply. For
trips over 20 miles, it uses gasoline, diesel, a fuel cell,
hydrogen, or other fuel source. The Energy Commission estimates
that PHEVs can get between 80 and 100 miles per gallon (mpg).
This is different from the Prius or similar hybrid vehicles,
where the gasoline powered motor kicks on first to charge the
battery, then the battery takes over when it's most efficient.
The Prius gets about 40 to 60 mpg depending on the efficiency of
the driving patterns. PHEVs are not commercially available
today; however, there are a few PHEV demonstration vehicles.
Most are "conversions" or traditional hybrids that have been
converted to plug-in hybrids.
Quick facts :
1)PHEV, according to Energy Commission, would reduce gasoline
use by 50% to 70% compared with a gasoline vehicle, depending
on its electric range.
2)According to ARB, a PHEV with 20 miles of "all-electric range"
that is recharged from the California grid would emit 62% less
greenhouse gas pollution than a conventional car.
3)Approximately 89% of personal vehicle trips nationwide cover
20 miles or less, which is within the all-electric range of a
PHEV.
CPUC current efforts : The CPUC is currently investigating
electric vehicles and has released a white paper that explores
grid compatibility issues relating to plug-in hybrid and
electric vehicles. As a part of this effort, CPUC has met with
stakeholders to discuss electric system impacts due to the
widespread use of PEVs. Upon examination and further
deliberations, the white paper recommendations could lead to an
Order Instituting a Rulemaking and subsequent proceeding by
CPUC. Additionally, CPUC is also separately examining PEV
issues within its internal Long Term Procurement Plan and Smart
Grid efforts.
Energy Commission Recommendation : The Energy Commission, in its
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"2005 Integrated Energy Planning Report" recommended the
formation of a plug-in hybrid electric vehicle working group
with members that would include state agencies and industry
stakeholders as follows:
"The state should establish a combined state/industry
working group to examine the markets for development and
commercialization of plug-in hybrid electric vehicles.
The state should develop partnerships with original
equipment manufacturers to demonstrate plug-in hybrid
electric vehicles, assess consumer demand for these
options, and support early incentives to reduce initial
consumer cost."
Arguments in Support of the bill :
1)The CPUC indicates that this bill is consistent with its goals
to reduce greenhouse gas emissions. Further, it states that
an "historic number of automakers have announced plans to
deploy a range of plug-in hybrids and electric vehicles (PEVs)
in 2009 and 2010. The CPUC supports the need to develop rules
and adopt policies to determine the infrastructure and pricing
structures for widespread deployment of plug-in hybrid and
electric vehicles."
2)The CPUC has prepared a white paper, dated May 2009, that
identifies opportunities for and barriers to on-road
light-duty vehicle electrification. According to CPUC, "the
paper is intended to serve as a preliminary scoping tool to
explore and provoke stakeholder input on potential policies
that might support light-duty vehicle electrification."
Furthermore, the paper indicates that "While there is much the
CPUC and the electricity utilities can do to prepare for and
encourage the widespread use of PEVs, market and battery
technical barriers may ultimately influence the sustainability
of PEV commercialization."
3)This bill is consistent with pending federal legislation
(Waxman-Markey) that would amend the federal Public Utility
Regulatory Policies Act (PURPA) to direct state public utility
commissions to examine infrastructure issues as similarly
required by this bill.
Arguments Against the bill :
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1)The Energy Commission provides funding to numerous public and
private entities to develop and deploy innovative technologies
that transform a diverse array of California's fuel and
vehicle types to help attain the state's climate change
policies. Also, ARB provides funding for air quality
improvement projects relating to fuel and vehicle
technologies. Some of the transportation technologies that
are being evaluated, assessed, and funded include biofuels,
hydrogen, self-charging ZEVs, advanced internal combustion
engines, conversions of hybrid technologies to PHEVs, and
others. Accordingly, one could argue that this bill provides
a single focus on PEVs without considering other technologies
that may become commercially viable.
2)The CPUC has prepared a white paper that may lead to a
rulemaking and subsequent proceeding by the CPUC that would
suggest that this bill is unnecessary.
Related federal and state legislation : Pending federal
legislation (Waxman-Markey) would amend the federal PURPA to
direct state PUCs to examine infrastructure issues.
SB 1737 (Kehoe) of 2008, would have required CPUC, by January 1,
2010, to require each electrical corporation to establish an
optional off-peak electrical rate for plug-in hybrid and
electric vehicles, or other optional rate structures, equipment,
techniques, or incentives to shift the charging of plug-in
hybrid and electric vehicles to off-peak periods. That bill was
subsequently amended to deal with Department of Real Estate
brokers and salespersons.
SB 2103 (Rosenthal), Chapter 791, Statutes of 1990, requires
CPUC, in consultation with various parties, to develop and
implement policies that promote the use of electric power and
natural gas to fuel low-emission vehicles and to report
periodically to the Legislature on those policies.
Suggested Committee Amendment :
To accommodate the request of CPUC to allow them additional time
to examine and address issues as identified in the bill and to
adopt through administrative proceedings implementing rules, the
committee is recommending that the January 1, 2011 rule adoption
deadline, currently established in the bill, be extended to July
1, 2011.
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REGISTERED SUPPORT / OPPOSITION :
Support
AAA Northern California
American Federation of State, County and Municipal Employees
(AFSCME), AFL-CIO
Automobile Club of Southern California
California Electric Transportation Coalition
California Public Utilities Commission (support with amendments)
Nissan North America
Plug In America
PowerGenix
Tesla Motors
Toyota Motor North America, Inc.
Union of Concerned Scientists
Opposition
None on file
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093