BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 631
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 631 (Ma)
          As Amended  June 1, 2011
          Majority vote 

           UTILITIES & COMMERCE         12-1                               
           
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          |Ayes:|Bradford, Buchanan, Fong, |     |                          |
          |     |Furutani, Roger           |     |                          |
          |     |Hern�ndez, Huffman,       |     |                          |
          |     |Knight, Ma, Nestande,     |     |                          |
          |     |Skinner, Swanson, Valadao |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Fuentes                   |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  States that a facility that supplies electricity to 
          charge electric vehicles is not a California Public Utilities 
          Commission (PUC)-regulated "public utility."   

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The author introduced this bill to put into law a 
          recent decision by the PUC to not regulate electric vehicle 
          charging stations as utilities.  According to the author, 
          "absent this bill, the needed charging stations won't exist.  
          Apartment complexes, parking garages, and commercial buildings 
          will not want to install these stations if they are regulated as 
          a public utility.  They don't want to assume the regulatory 
          burden of hiring lawyers in order to invest in expanding 
          infrastructure."  

           PUC rulemaking  :  The PUC has taken the first step in encouraging 
          solutions for electric vehicles (EVs).  In 2009, the PUC opened 
          a rulemaking (R-09-08-009) to consider infrastructure, rates, 
          and policies to support EVs.  The rulemaking also addressed the 
          requirements of SB 626 (Kehoe) Chapter 355, Statutes of 2009, 
          which requires the PUC, in consultation with the California 
          Energy Commission, the Air Resources Board, electrical 










                                                                  AB 631
                                                                  Page  2


          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 (Kehoe) requires the PUC to adopt 
          rules by July 1, 2011.

          On July 29, 2010, the PUC issued a decision on Phase I of the 
          rulemaking.  The PUC 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.  

          Phase II of the rulemaking will consider the appropriate utility 
          role:  1) in the provision of electric vehicle charging services 
          to the public; 2) with respect to charging equipment on the 
          customer's side of the meter; and, 3) in 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 Phase II decision is 
          expected to be released soon. 

          The latest amendments state that the bill's provisions do not 
          affect the PUC's authority through Public Utilities Code 
          Sections 454 and 740.2 to address the potential impacts of the 
          electric vehicle charging services through the rate-setting of 
          public utilities.


           Analysis Prepared by  :    DaVina Flemings / U. & C. / (916) 
          319-2083 


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          0001192