BILL NUMBER: SB 1435AMENDED BILL TEXT AMENDED IN ASSEMBLY AUGUST 18, 2010 AMENDED IN ASSEMBLY AUGUST 2, 2010 AMENDED IN ASSEMBLY JUNE 16, 2010 AMENDED IN SENATE APRIL 5, 2010 INTRODUCED BY Senators Padilla and Kehoe FEBRUARY 19, 2010 An act to amend Section 216 of, and to add Chapter 3 (commencing with Section 4100) to Division 2 of, the Public Utilities Code, relating to electric vehicle charging stations. LEGISLATIVE COUNSEL'S DIGEST SB 1435, as amended, Padilla. Electricity: electric and plug-in hybrid electric vehicles: charging stations. charging. (1) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, as defined. The existing Public Utilities Act requires every public utility to furnish and maintain adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities as are necessary to promote the safety, health, comfort, and convenience of its patrons, employees, and the public. This bill would provide that the ownership, control, operation, or management of a facility that supplies electricity only for use to power charge light-duty plug-in electric vehicles or plug-in hybrid vehicles , as defined, does not make the corporation or person a public utility for purposes of the act. (2) Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, the State 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 and electric vehicles and, by July 1, 2011, to adopt rules that address specified matters. This bill would require the Public Utilities Commission to adopt rules that are applicable to each facility that supplies electricity for use to power electric vehicles or plug-in hybrid vehicles, which is located that it determines are necessary for the charging of plug-in electric vehicles within the service territory of an electrical corporation, to achieve certain results. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 216 of the Public Utilities Code is amended to read: 216. (a) "Public utility" includes every common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, and heat corporation, where the service is performed for, or the commodity is delivered to, the public or any portion thereof. (b) Whenever any common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, or heat corporation performs a service for, or delivers a commodity to, the public or any portion thereof for which any compensation or payment whatsoever is received, that common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, or heat corporation, is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part. (c) When any person or corporation performs any service for, or delivers any commodity to, any person, private corporation, municipality, or other political subdivision of the state, that in turn either directly or indirectly, mediately or immediately, performs that service for, or delivers that commodity to, the public or any portion thereof, that person or corporation is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part. (d) Ownership or operation of a facility that employs cogeneration technology or produces power from other than a conventional power source or the ownership or operation of a facility which employs landfill gas technology does not make a corporation or person a public utility within the meaning of this section solely because of the ownership or operation of that facility. (e) Any corporation or person engaged directly or indirectly in developing, producing, transmitting, distributing, delivering, or selling any form of heat derived from geothermal or solar resources or from cogeneration technology to any privately owned or publicly owned public utility, or to the public or any portion thereof, is not a public utility within the meaning of this section solely by reason of engaging in any of those activities. (f) The ownership or operation of a facility that sells compressed natural gas at retail to the public for use only as a motor vehicle fuel, and the selling of compressed natural gas at retail from that facility 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 this section solely because of that ownership, operation, or sale. (g) Ownership or operation of a facility that is an exempt wholesale generator, as defined in the Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)), does not make a corporation or person a public utility within the meaning of this section, solely due to the ownership or operation of that facility. (h) The ownership, control, operation, or management of an electric plant used for direct transactions or participation directly or indirectly in direct transactions, as permitted by subdivision (b) of Section 365, sales into a market established and operated by the Independent System Operator or any other wholesale electricity market, or the use or sale as permitted under subdivisions (b) to (d), inclusive, of Section 218, shall not make a corporation or person a public utility within the meaning of this section solely because of that ownership, participation, or sale. (i) The ownership, control, operation, or management of a facility that supplies electricity only for use to power charge light-duty plug-in electric vehicles or plug-in hybrid vehicles does not make the corporation or person a public utility within the meaning of this section solely because of that ownership, control, operation, or management. As used in this subdivision, "plug-in electric vehicle" includes light-duty battery electric and plug-in hybrid electric vehicles. SEC. 2. Chapter 3 (commencing with Section 4100) is added to Division 2 of the Public Utilities Code, to read: CHAPTER 3. ELECTRICAL ELECTRIC VEHICLE CHARGING STATIONS 4100. The Legislature finds and declares all of the following: (a) Within the next five years automakers are expected to release 10 to 15 electric vehicle models into California's new car market. (b) Electric and plug-in hybrid vehicles can Plug-in electric vehicles will benefit the environment by reducing tailpipe emissions, but overall emissions of greenhouse gases and tailpipe emissions. Nevertheless, electrification of the transportation sector could result in the construction of more conventional powerplants using fossil fuels to generate electricity to meet increased peak demand loads potentially resulting in increased powerplant emissions if the charging of those vehicles is not properly managed. Accordingly, the commission will play an important role in maximizing overall emission reductions. (c) Electric and plug-in hybrid Plug-in electric vehicle charging will place new demands on the state's electrical distribution and transmission system, but managed properly that demand can benefit ratepayers the state and ratepayers by encouraging off-peak charging that could flatten the electrical load shape and improve transmission and distribution asset utilization while increasing load factors . (d) Third-party providers of electric and plug-in hybrid vehicle recharging systems will cumulatively provide charging services for tens of thousands of vehicles. These recharging systems, if not carefully integrated and controlled, have the potential to negatively impact electrical grid operations and system reliability. (e) A well-planned electric and plug-in hybrid (d) Smart plug-in electric vehicle charging and infrastructure can shift a significant amount of charging to off-peak times, thereby avoiding minimize the need to build new powerplants and increasing , increase the efficient utilization of existing powerplants, encouraging encourage customers to use electricity generated from eligible renewable energy resources to charge their vehicles, and promoting promote the most energy efficient electric and plug-in hybrid plug-in electric vehicles. (f) (e) To meet these goals, the Public Utilities Commission should exercise limited jurisdiction over third-party electric and plug-in hybrid vehicle charging providers. "Limited jurisdiction," as used in this subdivision, means ensuring effective load management exercise its authority under this chapter and Sections 454 and 740.2 to ensure effective load management and resource planning , which will also result in improved environmental performance of the system, including integration with eligible renewable energy resources and reduced emissions of greenhouse gases. Measures the commission should consider to facilitate load management and resource planning for the charging of plug-in electric vehicles include its authority over approval of electricity rates and tariffs, including employing time-of-use rates and tariffs, its authority to approve terms of service and interconnection, and its authority to approve demand response programs. 4105. The (a) As used in this chapter, "plug-in electric vehicle" includes light-duty battery electric and plug-in hybrid electric vehicles. (b) The commission shall adopt rules that are applicable to each facility that supplies electricity for use to power electric vehicles or plug-in hybrid vehicles, which is located that it determines are necessary for the charging of plug-in electric vehicles within the service territory of an electrical corporation, to achieve all of the following: (a) Minimize negative impacts to the electrical distribution grid and maximize potential benefits to ratepayers through management of the grid. (b) Shift a significant portion of electric and plug-in hybrid plug-in electric vehicle charging to off-peak periods, thereby avoiding minimizing the need to build new generating capacity and increasing the efficient use utilization of existing generating capacity. (c) Encourage the integration of intermittent eligible plug-in electric vehicle charging during periods that can improve utilization and integration of renewable energy resources into the electrical transmission and distribution grid by encouraging charging when those resources are more likely to be generating electricity. (d) Promote use of the most energy efficient electric and plug-in hybrid vehicles. grid.