BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1437|
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THIRD READING
Bill No: SB 1437
Author: Kehoe (D)
Amended: 4/13/10
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 10-0, 4/6/10
AYES: Padilla, Dutton, Corbett, Cox, Kehoe, Lowenthal,
Oropeza, Simitian, Strickland, Wright
NO VOTE RECORDED: Florez
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Electricity vehicles
SOURCE : Author
DIGEST : This bill requires the California Public
Utilities Commission, by July 1, 2012, for each class of
ratepayers, to determine the direct costs and benefits
associated with the expected additional load from plug-in
hybrid and electric vehicles on the energy grid..
ANALYSIS : Existing law requires the California Public
Utilities Commission (CPUC) to evaluate policies that
develop an infrastructure sufficient to overcome barriers
to the widespread use of plug-in hybrid and full electric
vehicles (collectively EVs) and to adopt rules to address
those barriers by July 1, 2011.
Background
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SB 1437
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According to the California Energy Commission (CEC) there
were 14,670 EVs operating in California in 2008 down from
an industry high of 23,399 in 2003. However an increasing
number and variety of EVs are expected to hit the showroom
floors of car dealers in the coming months and years. The
CEC expects the number of EVs to grow from 32,756 in 2011
to 1.5 million by 2020 and 2.8 million by 2030. An
historic number of automakers have already begun or
announced deployment of a range of on-road EVs, including
light-duty plug-in hybrid EVs, full-size battery EVs, two
wheel battery EVs, and three or four wheel low-speed
neighborhood EVs beginning this year. The state's
investor-owned utilities (IOUs) do have tariffs in place
for electric cars and have assisted residential customers
and fleet managers with the charging infrastructure
necessary for the vehicles on a limited basis. However
regulators, the utilities and the electric grid are not
ready for the thousands of cars expected. Infrastructure
investments and policies at the customer site, commercial
site, public charging site, and distribution system level
are all required to prepare the electricity system for the
widespread use of EVs.
In response to the marketplace and the directives of SB 626
(Kehoe), of 2009 the CPUC has initiated a rulemaking
(R.09-08-009) to determine the barriers and opportunities
presented by EVs on the grid. Issues under consideration
include rate design for the charging of EVs, options for
development of metering and charging infrastructure, and
how to incorporate EV charging with renewable energy
supply.
This bill determines the direct costs and benefits
associated with the expected additional load from plug-in
hybrid and electric vehicles. This determination shall
include the direct costs of fueling plug-in hybrid and
electric vehicles, including the costs of charging
connections and upgrades to utility service and the
distribution system, and the direct benefits provided,
including the increased utilization of existing grid
infrastructure.
Related Legislation .
SB 1437
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SB 1455 (Kehoe) requires the CPUC to prepare and make
available a handbook that notifies an EV owner of specified
safety features and hazards associated with charging an EV.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:do 4/27/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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