BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 626
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     SB 626 (Kehoe) - As Amended:  July 1, 2009 

          Policy Committee:                               
          TransportationVote:10-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Public Utilities Commission (PUC) to  
          adopt rules regarding plug-in hybrid vehicles.  Specifically,  
          this bill:

          1)Requires the PUC, in consultation with the California Energy  
            Commission, the 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 the PUC, by July 1, 2011, to adopt rules addressing  
            the following:  

             a)   With regard to realizing widespread use of plug-in  
               hybrid and electric vehicles:

               i)     The impacts upon electrical infrastructure,  
                 including necessary infrastructure upgrades, and the role  
                 and development of public charging infrastructure. 

               ii)           The impact of plug-in hybrid and electric  
                 vehicles on grid stability and the integration of  
                 renewable energy resources.

               iii)          Required technological advances, and the  
                 state's role in supporting such development.

               iv)           The impact of existing code and permit  
                 requirements, and recommended changes to any existing  








                                                                  SB 626
                                                                  Page  2

                 legal impediments.

               v)     The impact on achieving renewable portfolio standard  
                 goals and AB 32 emissions reduction goals, and steps to  
                 possibly shift emissions reductions responsibilities from  
                 the transportation sector to the electrical industry.

             b)   The role the state should take to ensure that  
               technologies employed in plug-in hybrid and electric  
               vehicles work harmoniously and across service territories.   


           FISCAL EFFECT  

          One-time special fund costs to the PUC of $110,000 for one  
          regulatory analyst position to administer and conduct a  
          proceeding within the allotted 18-month timeframe.  [Public  
          Utilities Reimbursement Account]

           COMMENTS  

           Purpose  .  This bill is intended to facilitate the deployment of  
          plug-in hybrid electric vehicles to assist with reducing  
          greenhouse gas emissions generated by the transportation sector.  
           According to the author, the PUC has not been given express  
          authority to examine how transforming into an electric vehicle  
          economy will effect the state's energy system, including grid  
          reliability and which sources of energy will be used to provide  
          electricity for these vehicles.  SB 626 provides 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.  The bill mandates the commission  
          to take the next step by administratively adopting rules and  
          policies supporting such vehicles.  

           Analysis Prepared by :    Chuck Nicol / APPR. / (916) 319-2081