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AB-33 Transportation electrification: electric vehicle service equipment: electrical corporations: rates.(2017-2018)

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Date Published: 03/23/2017 09:00 PM
AB33:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 33


Introduced by Assembly Member Quirk

December 05, 2016


An act to add Section 740.16 to the Public Utilities Code, relating to greenhouse gases. transportation electrification.


LEGISLATIVE COUNSEL'S DIGEST


AB 33, as amended, Quirk. Greenhouse gases from transportation: reduction: fees and rebates on new vehicle purchases. Transportation electrification: electric vehicle service equipment: electrical corporations: rates.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. Existing law requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission), the State Air Resources Board (state 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 issues. Existing law requires the PUC, in cooperation with the Energy Commission, the state board, air quality management districts and air pollution control districts, electrical and gas corporations, and the motor vehicle industry, to evaluate and implement policies to promote the development of equipment and infrastructure needed to facilitate the use of electric power and natural gas to fuel low-emission vehicles.
Existing law, enacted as part of the Clean Energy and Pollution Reduction Act of 2015, requires the PUC, in consultation with the Energy Commission and state board, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to reduce dependence on petroleum, meet air quality standards, achieve the goals set forth in the Charge Ahead California Initiative, and reduce emissions of greenhouse gases to 40% below 1990 levels by 2030 and to 80% below 1990 levels by 2050. The PUC is required to approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, through a reasonable cost recovery mechanism, if they are consistent with the above-described purposes, do not unfairly compete with nonutility enterprises, include performance accountability measures, and are in the interests of ratepayers.
This bill would require the PUC, by March 30, 2018, in consultation with the state board and the Energy Commission, to authorize electrical corporations to offer programs and investments in electric vehicle service equipment, as defined, installed in residential garages of customers who purchase a used electric vehicle. The bill would require that the programs and investments be designed to accelerate widespread transportation electrification, achieve ratepayer benefits, reduce dependence on petroleum, meet air quality standards, and reduce emissions of greenhouse gases. The PUC would be required to approve, or modify and approve, each proposal to offer these programs and investments that is filed by an electrical corporation within 6 months of the date of filing of the completed proposal. The bill would provide that a participant in the program shall receive electrical service at a grid-integrated rate, as defined. The bill would require that a program approved by the PUC include a reasonable mechanism for cost recovery by the electrical corporation and would require that the PUC ensure that this cost recovery is nonbypassable and recoverable from all ratepayers.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because the provisions of this bill would be a part of the act and because a violation of an order or decision of the PUC implementing its requirements would be a crime, the bill would impose a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation by the Legislature.

This bill would state the intent of the Legislature to enact legislation to reduce net emissions from greenhouse gases from transportation by imposing fees and granting rebates on sales of new automobiles and light trucks.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) It is the policy of the state and the intent of the Legislature to encourage transportation electrification.
(b) To reach the aggressive goals for reducing emissions of greenhouse gases to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050, the entire state fleet, both public and private, will need to make a dramatic transition to vehicles that emit far less of greenhouse gases.
(c) In 2012 the Governor issued an executive order directing the state government to help accelerate the market for zero-emission vehicles (ZEVs) calling for 1.5 million ZEVs in California by 2025. In November 2016, cumulative sales of ZEVs in California since 2010 were predicted to hit over 250,000. This is significantly less than the 1.5 million needed by 2025 in order to meet state goals.
(d) The establishment of adequate infrastructure to support one million ZEVs by 2020 in anticipation of the 1.5 million ZEVs on California roads by 2025 is also significantly behind schedule.
(e) These goals are stepping stones toward the greater 2050 goal of virtually all personal transportation in the state being based on ZEVs. More needs to be done to install electric vehicle infrastructure that will support and enable these critical zero-emission vehicle goals.
(f) According to United States Census data, over 49 percent of California’s housing structures were built prior to 1960 and over 87 percent were built prior to 1980. Older homes and neighborhoods may require upgrades to electrical panels, lines, and transformers to accommodate the demand for charging electric vehicles.
(g) Encouraging the growth of the secondary electric vehicle market could provide an opportunity to increase the use of electric vehicles in disadvantaged communities.

SEC. 2.

 Section 740.16 is added to the Public Utilities Code, to read:

740.16.
 (a) For purposes of this section, the following terms have the following meanings:
(1) “Electric vehicle” means both battery electric and plug-in hybrid electric vehicles.
(2) “Electric vehicle service equipment” means an electrical device allowing persons to safely charge an electric vehicle at not less than Level 2, including any needed electrical panel, line, and transformer upgrades. “Electric vehicle service equipment” may include direct current fast chargers that convert alternating current to direct current, bypass an electric vehicle’s onboard charging unit, and provide direct current directly to the vehicle’s batteries using a charging port.
(3) “Grid-integrated rate” means an electrical service rate design that reflects dynamic electrical grid conditions.
(4) “Residential garage” means a garage or carport attached to or reserved for a single detached dwelling or a single attached dwelling in a two- to four-unit residential building.
(b) By March 30, 2018, the commission, in consultation with the State Air Resources Board and the Energy Commission, shall authorize electrical corporations to offer programs and investments in electric vehicle service equipment installed in residential garages of customers who purchase used electric vehicles. The programs and investments shall be designed to accelerate widespread transportation electrification, achieve ratepayer benefits, reduce dependence on petroleum, meet air quality standards, and reduce emissions of greenhouse gases. The commission shall approve, or modify and approve, each proposal filed by an electrical corporation pursuant to this section within six months of the date of filing of the completed proposal.
(c) Customers of an electrical corporation participating in a residential garage electric vehicle charging program pursuant to this section shall receive electrical service pursuant to a grid-integrated rate.
(d) An electrical corporation’s residential garage electric vehicle charging program authorized by the commission pursuant to subdivision (b) shall include a reasonable mechanism for cost recovery by the electrical corporation.
(e) The commission shall ensure that all cost recovery by an electrical corporation pursuant to this section is nonbypassable and recoverable from all ratepayers.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.

The Legislature finds and declares all of the following:

(a)To achieve the goal of reducing greenhouse gas emissions to 40 percent of 1990 levels by 2030, it is critical to increase the sales of vehicles that are low emitters of net greenhouse gases. Current programs to subsidize the sale of low net emitters of greenhouse gases will not provide adequate funding to increase the sale of these vehicles. Any program to do so should improve social equity by reducing the cost of vehicles for low-income buyers.

(b)The cost to taxpayers of providing incentives for “zero-emission vehicles” will become increasingly burdensome as sales of plug-in and fuel cell electric vehicles increase. Currently, California rebates approximately $2,500 for each battery electric vehicle sold, $1,500 for a plug-in hybrid vehicle, and $5,000 for a fuel cell electric vehicle. If, for example, one-quarter of annual vehicle sales are electric vehicles (500,000 out of roughly 2 million annual vehicle sales), the annual cost to California would be $1.25 billion ($2,500 x 500,000).

(c)Markets and regulations are getting out of alignment in the sense that vehicle fuel economy and greenhouse gas standards are getting more stringent even as gasoline prices are low. The result is consumers are becoming increasingly resistant to buying the vehicles that regulations require be sold. As vehicle fuel and greenhouse gas standards get more stringent, the misalignment will worsen.

(d)Programs need to be created to encourage the purchase of vehicles that are low emitters of greenhouse gas. One approach would be to design a program that would charge a fee to vehicle buyers of high emitters of net greenhouse gases and provide rebates to vehicle buyers of low emitters of net greenhouse gases. The goal is to design the schedule of fees and rebates, referred to as “Feebates,” to be revenue neutral, meaning the fees impose no burden on taxpayers or any government program.

(e)A program that would charge fees for the purchase of new vehicles that are the highest emitters of net greenhouse gases and give a rebate on the purchase of new vehicles that are the lowest emitters of net greenhouse gases may benefit low-income buyers because they tend to buy smaller, lower emitting vehicles.

SEC. 2.

It is the intent of the Legislature to enact legislation to reduce net emissions from greenhouse gases from transportation by imposing fees and granting rebates on sales of new automobiles and light trucks.