BILL ANALYSIS
SB 1435
Page 1
Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1435 (Padilla) - As Amended: August 2, 2010
Policy Committee: Utilities and
Commerce Vote: 9-4
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Public Utilities Commission (PUC) to
adopt rules applicable to charging facilities for electric
vehicles (EVs) or plug-in hybrid vehicles (PHEVs) located within
the territories of the electrical investor-owned utilities
(IOUs). Specifically, this bill:
1)Requires the PUC-adopted rules to:
a) Minimize negative impacts to the distribution grid and
maximize potential benefits to ratepayers through grid
management.
b) Shift a significant portion of vehicle charging to
off-peak periods.
c) Encourage charging when intermittent renewable energy
resources are more likely to be generating electricity.
d) Promote the most energy efficient electric and hybrid
vehicles.
2)Stipulates that ownership, control, operation, or management
of a charging facility does not make the owner a public
utility subject to PUC regulation.
FISCAL EFFECT
One-time special fund costs to the PUC of $360,000 for two
analyst positions and an administrative law judge to establish
the required rules. [Public Utilities Reimbursement Account]
SB 1435
Page 2
[The PUC indicates that the requirements of this bill go beyond
current proceedings at the commission (see below) and would
require adoption of rules for each charging facility. The
commission notes that the impacts of charging facilities on the
electrical system may vary on a circuit by circuit basis, and
will depend on a range of factors, such as charging voltage,
time of facility use and existing circuit capacity. The cost
estimate assumes a detailed analysis of each of these
circumstances for each facility. While likely not the author's
intent, the PUC suggests amendments allowing flexibility to
develop broad tariff principals relevant to impacts on the
system level in general.]
COMMENTS
1)Background . Last year, the PUC opened a rulemaking to consider
infrastructure, rates, and policies to support EVs. The
rulemaking also addressed the requirements of SB 626 (Kehoe)/
Chapter 355 of 2009, which requires the PUC, in consultation
with other parties, to evaluate policies to develop
infrastructure sufficient to overcome any barriers to the
widespread deployment and use of PHEVs. SB 626 requires the
PUC to adopt rules by July 1, 2011.
On May 21, 2010, in a proposed decision on Phase I of the
rulemaking, Commissioner Ryan ruled that the ownership or
operation of a facility that sells electricity at retail to
the public for use only as a motor vehicle fuel does not make
the corporation or person a public utility within the meaning
of the Public Utilities Code. This decision implies that the
commissioner considers retail electricity for use as a vehicle
fuel as a competitive industry.
Phase II of the rulemaking will consider the appropriate
utility role in the provision of electric vehicle charging
services to the public; the appropriate utility role with
respect to charging equipment on the customer's side of the
meter; and cost allocation, including a consideration of the
circumstances in which the costs of any distribution system
upgrades should be borne by an individual customer or be
recoverable from all customers, in addition to other related
issues. The PUC indicates that this proceeding will not
SB 1435
Page 3
address the information required by this bill.
2)Purpose . The author states that this bill addresses the issue
by requiring the PUC to adopt rules to ensure that the demand
created by EVs is properly managed and integrated with
renewable generation. Effective load management, when coupled
with environmental programs and policies, can result in
improved environmental performance of the system, including
opportunities for increased integration with renewables and
reduced greenhouse gas emissions. However, if not properly
managed, electrification of the transportation sector could
result in the construction of more conventionally fueled power
plants to meet increased peak demand loads.
3)Opposition . Better Place, Coulomb Technologies, and ECOtality,
Inc.-providers of vehicle charging stations-argue that the PUC
should first be allowed to complete Phase II of its
proceeding, and that "[i]mposing unnecessary regulation on the
emerging EV industry threatens to constrain the innovation and
investment currently driving solutions that would make
electric vehicles an asset to California's grid and renewable
electricity efforts."
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081