BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1435
                                                                  Page  1


          SENATE THIRD READING
          SB 1435 (Padilla and Kehoe)
          As Amended  August 18, 2010
          Majority vote 

           SENATE VOTE  :Vote not relevant  
           
           UTLITIES & COMMERCE              9-4                 
          APPROPRIATIONS      12-4        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bradford, Knight, Carter, |Ayes:|Fuentes, Bradford,        |
          |     |Fuentes, Furutani,        |     |Huffman, Coto, Davis, De  |
          |     |Huffman, Ma, Skinner,     |     |Leon, Gatto, Hall,        |
          |     |Swanson                   |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Tom Berryhill, Buchanan,  |Nays:|Harkey, Miller, Nielsen,  |
          |     |Fuller, Villines          |     |Norby                     |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Requires California Public Utilities Commission (PUC)  
          to adopt rules as it deems necessary for the charging of plug-in  
          electric vehicles.  

           FISCAL EFFECT  :   One-time special fund costs to PUC of $240,000  
          for an analyst and a part-time attorney and administrative law  
          judge to establish the required rules. [Public Utilities  
          Reimbursement Account] 

           COMMENTS  :  Last year, PUC opened a rulemaking (R-09-08-009) to  
          consider infrastructure, rates, and policies to support electric  
          vehicles.  The rulemaking also addressed the requirements of SB  
          626 (Kehoe) Chapter 355, Statutes of 2009, which requires PUC,  
          in consultation with California Energy Commission, Air Resources  
          Board, 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 electric vehicles.  SB 626 requires 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  








                                                                  SB 1435
                                                                  Page  2


          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 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.  


           Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083 



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