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SB-1183 Electric vehicle charging master plan.(2019-2020)

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Date Published: 04/03/2020 09:00 PM
SB1183:v98#DOCUMENT

Amended  IN  Senate  April 03, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1183


Introduced by Senator Hertzberg

February 20, 2020


An act to amend Section 44272 of the Health and Safety Code, to add Section 25229.1 to, and to add Chapter 4.1 (commencing with Section 25328) to Division 15 of, the Public Resources Code, and to amend Section 740.12 of the Public Utilities Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1183, as amended, Hertzberg. Electric vehicle charging master plan.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), working with the State Air Resources Board and the Public Utilities Commission (PUC), to prepare a statewide assessment of the electric vehicle charging infrastructure needed to support the levels of electric vehicle adoption required for the state to meet its goals of putting at least 5 million zero-emission vehicles on California roads by 2030, and of reducing emissions of greenhouse gases to 40% below 1990 levels by 2030. Existing law require the Energy Commission to update the assessment at least once every 2 years.
This bill would require the Energy Commission, as a part of each update to the assessment, to conduct an assessment of certain factors and how those factors will affect the market for and technological development of electric vehicles and infrastructure. The bill would require the Energy Commission to convene the EV Infrastructure Council, which the bill would establish, to develop develop, by January 1, 2022, an Electric Vehicle Charging Master Plan, as specified. The bill would require the Energy Commission to update the plan at least once every 2 years. The bill would establish a goal of the state to deploy no less than 250,000 publicly available electric vehicle charging station plugs by 2025 and would require the commission to develop an electric vehicle charging station deployment goal to support 5 million zero-emission vehicles by 2030.
Existing law requires the Energy Commission to administer the Alternative and Renewable Fuel and Vehicle Technology Program to provide financial assistance to various entities for those entities to develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies. Existing law requires the PUC, in consultation with the state board and the Energy Commission, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification. Existing law requires the PUC to approve, or modify and approve, those programs and investments if they meet certain requirements.
This bill would require the Alternative and Renewable Fuel and Vehicle Technology Program and those programs and investments required by the PUC to accelerate widespread transportation electrification to be consistent with the Electric Vehicle Charging Master Plan that would be developed by the council.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 44272 of the Health and Safety Code is amended to read:

44272.
 (a) The Alternative and Renewable Fuel and Vehicle Technology Program is hereby created. The program shall be administered by the commission. The commission shall implement the program by regulation pursuant to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The program shall provide, upon appropriation by the Legislature, competitive grants, revolving loans, loan guarantees, loans, or other appropriate funding measures to public agencies, vehicle and technology entities, businesses and projects, public-private partnerships, workforce training partnerships and collaboratives, fleet owners, consumers, recreational boaters, and academic institutions to develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies. The emphasis of this program shall be to develop and deploy technology and alternative and renewable fuels in the marketplace, without adopting any one preferred fuel or technology. The commission shall ensure that the program is consistent with the plan developed pursuant to Chapter 4.1 (commencing with Section 25328) of Division 15 of the Public Resources Code.
(b) A project that receives more than seventy-five thousand dollars ($75,000) in funds from the commission shall be approved at a noticed public meeting of the commission and shall be consistent with the priorities established by the investment plan adopted pursuant to Section 44272.5. Under this article, the commission may delegate to the commission’s executive director, or the executive director’s designee, the authority to approve either of the following:
(1) A contract, grant, loan, or other agreement or award that receives seventy-five thousand dollars ($75,000) or less in funds from the commission.
(2) Amendments to a contract, grant, loan, or other agreement or award as long as the amendments do not increase the amount of the award, change the scope of the project, or modify the purpose of the agreement.
(c) The commission shall provide preferences to those projects that maximize the goals of the Alternative and Renewable Fuel and Vehicle Technology Program, based on the following criteria, as applicable:
(1) The project’s ability to provide a measurable transition from the nearly exclusive use of petroleum fuels to a diverse portfolio of viable alternative fuels that meet petroleum reduction and alternative fuel use goals.
(2) The project’s consistency with existing and future state climate change policy and low-carbon fuel standards.
(3) The project’s ability to reduce criteria air pollutants and air toxics and reduce or avoid multimedia environmental impacts.
(4) The project’s ability to decrease, on a life-cycle basis, the discharge of water pollutants or any other substances known to damage human health or the environment, in comparison to the production and use of California Phase 2 Reformulated Gasoline or diesel fuel produced and sold pursuant to California diesel fuel regulations set forth in Article 2 (commencing with Section 2280) of Chapter 5 of Division 3 of Title 13 of the California Code of Regulations.
(5) The project does not adversely impact the sustainability of the state’s natural resources, especially state and federal lands.
(6) The project provides nonstate matching funds. Costs incurred from the date a proposed award is noticed may be counted as nonstate matching funds. The commission may adopt further requirements for the purposes of this paragraph. The commission is not liable for costs incurred pursuant to this paragraph if the commission does not give final approval for the project or the proposed recipient does not meet requirements adopted by the commission pursuant to this paragraph.
(7) The project provides economic benefits for California by promoting California-based technology firms, jobs, and businesses.
(8) The project uses existing or proposed fueling infrastructure to maximize the outcome of the project.
(9) The project’s ability to reduce on a life-cycle assessment greenhouse gas emissions by at least 10 percent, and higher percentages in the future, from current reformulated gasoline and diesel fuel standards established by the state board.
(10) The project’s use of alternative fuel blends of at least 20 percent, and higher blend ratios in the future, with a preference for projects with higher blends.
(11) The project drives new technology advancement for vehicles, vessels, engines, and other equipment, and promotes the deployment of that technology in the marketplace.
(12) The project’s ability to transition workers to, or promote employment in, the alternative and renewable fuel and vehicle technology sector.
(d) The commission shall rank applications for projects proposed for funding awards based on solicitation criteria developed in accordance with subdivision (c), and shall give additional preference to funding those projects with higher benefit-cost scores.
(e) Only the following shall be eligible for funding:
(1) Alternative and renewable fuel projects to develop and improve alternative and renewable low-carbon fuels, including electricity, ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and biomethane, among others, and their feedstocks that have high potential for long-term or short-term commercialization, including projects that lead to sustainable feedstocks.
(2) Demonstration and deployment projects that optimize alternative and renewable fuels for existing and developing engine technologies.
(3) Projects to produce alternative and renewable low-carbon fuels in California.
(4) Projects to decrease the overall impact of an alternative and renewable fuel’s life-cycle carbon footprint and increase sustainability.
(5) Alternative and renewable fuel infrastructure, fueling stations, and equipment. The preference in paragraph (10) of subdivision (c) shall not apply to renewable diesel or biodiesel infrastructure, fueling stations, and equipment used solely for renewable diesel or biodiesel fuel.
(6) Projects to develop and improve light-, medium-, and heavy-duty vehicle technologies that provide for better fuel efficiency and lower greenhouse gas emissions, alternative fuel usage and storage, or emission reductions, including propulsion systems, advanced internal combustion engines with a 40 percent or better efficiency level over the current market standard, lightweight materials, intelligent transportation systems, energy storage, control systems and system integration, physical measurement and metering systems and software, development of design standards and testing and certification protocols, battery recycling and reuse, engine and fuel optimization electronic and electrified components, hybrid technology, plug-in hybrid technology, battery electric vehicle technology, fuel cell technology, and conversions of hybrid technology to plug-in technology through the installation of safety certified supplemental battery modules.
(7) Programs and projects that accelerate the commercialization of vehicles and alternative and renewable fuels including buy-down programs through near-market and market-path deployments, advanced technology warranty or replacement insurance, development of market niches, supply-chain development, and research related to the pedestrian safety impacts of vehicle technologies and alternative and renewable fuels.
(8) Programs and projects to retrofit medium- and heavy-duty onroad and nonroad vehicle fleets with technologies that create higher fuel efficiencies, including alternative and renewable fuel vehicles and technologies, idle management technology, and aerodynamic retrofits that decrease fuel consumption.
(9) Infrastructure projects that promote alternative and renewable fuel infrastructure development connected with existing fleets, public transit, and existing transportation corridors, including physical measurement or metering equipment and truck stop electrification.
(10) Workforce training programs related to the development and deployment of technologies that transform California’s fuel and vehicle types and assist the state in implementing its climate change policies, including, but not limited to, alternative and renewable fuel feedstock production and extraction; renewable fuel production, distribution, transport, and storage; high-performance and low-emission vehicle technology and high tower electronics; automotive computer systems; mass transit fleet conversion, servicing, and maintenance; and other sectors or occupations related to the purposes of this chapter, including training programs to transition dislocated workers affected by the state’s greenhouse gas emission policies, including those from fossil fuel sectors, or training programs for low-skilled workers to enter or continue in a career pathway that leads to middle skill, industry-recognized credentials or state-approved apprenticeship opportunities in occupations related to the purposes of this chapter.
(11) Block grants or incentive programs administered by public entities or not-for-profit technology entities for multiple projects, education and program promotion within California, and development of alternative and renewable fuel and vehicle technology centers. The commission may adopt guidelines for implementing the block grant or incentive program, which shall be approved at a noticed public meeting of the commission.
(12) Life-cycle and multimedia analyses, sustainability and environmental impact evaluations, and market, financial, and technology assessments performed by a state agency to determine the impacts of increasing the use of low-carbon transportation fuels and technologies, and to assist in the preparation of the investment plan and program implementation.
(13) A program to provide funding for homeowners who purchase a plug-in electric vehicle to offset costs associated with modifying electrical sources to include a residential plug-in electric vehicle charging station. In establishing this program, the commission shall consider funding criteria to maximize the public benefit of the program.
(f) The commission may make a single source or sole source award pursuant to this section for applied research. The same requirements set forth in Section 25620.5 of the Public Resources Code shall apply to awards made on a single source basis or a sole source basis. This subdivision does not authorize the commission to make a single source or sole source award for a project or activity other than for applied research.
(g) The commission may do all of the following:
(1) Contract with the Treasurer to expend funds through programs implemented by the Treasurer, if the expenditure is consistent with all of the requirements of this article and Article 1 (commencing with Section 44270).
(2) Contract with small business financial development corporations established by the Governor’s Office of Business and Economic Development to expend funds through the Small Business Loan Guarantee Program if the expenditure is consistent with all of the requirements of this article and Article 1 (commencing with Section 44270).
(3) Advance funds, pursuant to an agreement with the commission, to any of the following:
(A) A public entity.
(B) A recipient to enable it to make advance payments to a public entity that is a subrecipient of the funds and under a binding and enforceable subagreement with the recipient.
(C) An administrator of a block grant program.
(h) The commission shall collaborate with entities that have expertise in workforce development to implement the workforce development components of this section, including, but not limited to, the California Workforce Development Board, the Employment Training Panel, the Employment Development Department, and the Division of Apprenticeship Standards.

SEC. 2.

 Section 25229.1 is added to the Public Resources Code, to read:

25229.1.
 (a) As a part of each update to the assessment required pursuant to Section 25229, the commission shall conduct an assessment of the following factors and how those factors will affect the market for and technological development of electric vehicles and infrastructure:
(1) Electrical generation being supplied by renewable energy and zero-carbon sources by 2045.
(2) The priority use of energy storage technology.
(3) New vehicle and charging technology regulations.
(4) Changes in vehicle ownership and operation, including autonomous vehicles, and ride-hailing and car sharing services.
(b) Each electrical corporation shall submit to the commission information identifying where excess electrical grid capacity exists and the optimal locations for the deployment of electric vehicle charging stations and infrastructure.

SEC. 3.

 Chapter 4.1 (commencing with Section 25328) is added to Division 15 of the Public Resources Code, to read:
CHAPTER  4.1. Electric Vehicle Charging Master Plan

25328.
 For purpose of this chapter, the following definitions apply:
(a) “Council” means the EV Infrastructure Council established pursuant to Section 25328.2.
(b) “Disadvantaged community” means a community that is identified as a disadvantaged community pursuant to Section 39711 of the Health and Safety Code.
(c) “Electric vehicle charging station” or “charging station” means electrical vehicle supply equipment as defined in Section 22511.2 of the Vehicle Code.
(d) “Low-income community” has the same meaning as set forth in Section 39713 of the Health and Safety Code.
(e) “Plan” means the Electric Vehicle Charging Master Plan developed pursuant to Section 25328.3.
(f) “Zero-emission vehicle” has the same meaning as set forth in Section 44258 of the Health and Safety Code.

25328.1.
 (a) It is the goal of the state to deploy no less than 250,000 publicly available electric vehicle charging station plugs by 2025. The commission may increase this goal if it determines, through its assessment pursuant to Section 25229.1, that an increase is feasible.
(b) The commission shall develop an electric vehicle charging deployment goal to support 5 million zero-emission vehicles by 2030. The commission may develop goals beyond 2030 if it deems that appropriate.

25328.2.
 (a) The commission shall convene the EV Infrastructure Council, which is hereby established.
(b) The council shall consist of all of the following:
(1) The chair of the commission, or the chair’s designee.
(2) The Director of the Office of Business and Economic Development, or the director’s designee.
(3) The President of the Public Utilities Commission, or the president’s designee.
(4) The chair of the State Air Resources Board, or the chair’s designee.
(5) The Director of the Department of Transportation, or the director’s designee.
(6) The Director of the Division of Measurement Standards, or the director’s designee.
(7) The Chair of the Building Standards Commission, or the chair’s designee.
(8) The Director of the Department of Housing and Community Development, or the director’s designee.
(c) The council shall meet no less than four times per year to coordinate state agency activities related to electric vehicle charging infrastructure and discuss additional strategies to facilitate the deployment of that infrastructure.
(d) The council’s meetings shall be open to the public and allow for public comment on topics before the council.

25328.3.
 On or before January 1, 2021, 2022, and at least once every two years thereafter, the commission, in consultation with the council, shall develop an Electric Vehicle Charging Master Plan to facilitate the deployment of electric vehicle charging stations. The plan shall include all of the following:
(a) A discussion of how all state, electric utility, and other public investments in electric vehicle charging infrastructure are being coordinated to meet the deployment goals of Section 25328.1.
(b) Identification of key strategies to facilitate electric vehicle charging infrastructure deployment that shall include, but are not limited to, all of the following:
(1) Coordinating various efforts across the relevant state agencies to ensure they are not enacting rules or regulations that are in conflict with one another.
(2) Improving building code infrastructure requirements for new and existing buildings.
(3) Streamlining the electric utility interconnection and energization process and timelines.
(4) Streamlining local permitting processes, costs, and timelines.
(5) Electrification of private fleet operators, including ridesharing services and other emerging mobility trends, in support of Section 5450 of the Public Utilities Code.
(6) Electrification of medium- and heavy-duty vehicles.
(7) Leveraging private capital for electric vehicle charging infrastructure.
(8) Stimulating market innovation, customer choice, and competition.
(9) Supporting development of electric vehicle charging stations, including high-speed charging stations, in state and federal highway corridors, along state evacuation routes, and in parking garages, urban areas, retail centers, community locations, workplaces, and residential locations.
(10) Supporting subsidized charging for low-income electric vehicle drivers.
(11) Expanding stage agency workplace and fleet charging.
(12) Expanding commercial and residential electric vehicle rate design options for electrical corporations and local publicly owned electric utilities.
(c) The plan shall also include strategies to deploy electric vehicle charging infrastructure that do all of the following:
(1) Minimize costs to upgrade the electrical distribution system.
(2) Optimize electrical distribution system upgrades, costs, and benefits, including by supporting renewable energy integration.
(3) Stimulate innovation, customer choice, and competition, and support exportable market models.
(4) Prioritize the needs of low-income and disadvantaged communities so that people in those communities can access the benefits of zero-emission vehicles and infrastructure.
(5) Leveraging multiple funding sources, including, but not limited to, private, municipal, state, and federal funding sources, as well as grants and funding from the Greenhouse Gas Reduction Fund.
(d) All state investments in electric vehicle charging infrastructure shall be consistent with the plan and other applicable law.

SEC. 4.

 Section 740.12 of the Public Utilities Code is amended to read:

740.12.
 (a) (1) The Legislature finds and declares all of the following:
(A) Advanced clean vehicles and fuels are needed to reduce petroleum use, to meet air quality standards, to improve public health, and to achieve greenhouse gas emissions reduction goals.
(B) Widespread transportation electrification is needed to achieve the goals of the Charge Ahead California Initiative (Chapter 8.5 (commencing with Section 44258) of Part 5 of Division 26 of the Health and Safety Code).
(C) Widespread transportation electrification requires increased access for disadvantaged communities, low- and moderate-income communities, and other consumers of zero-emission and near-zero-emission vehicles, and increased use of those vehicles in those communities and by other consumers to enhance air quality, lower greenhouse gases emissions, and promote overall benefits to those communities and other consumers.
(D) Reducing emissions of greenhouse gases to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050 will require widespread transportation electrification.
(E) Widespread transportation electrification requires electrical corporations to increase access to the use of electricity as a transportation fuel.
(F) Widespread transportation electrification should stimulate innovation and competition, enable consumer options in charging equipment and services, attract private capital investments, and create high-quality jobs for Californians, where technologically feasible.
(G) Deploying electric vehicles should assist in grid management, integrating generation from eligible renewable energy resources, and reducing fuel costs for vehicle drivers who charge in a manner consistent with electrical grid conditions.
(H) Deploying electric vehicle charging infrastructure should facilitate increased sales of electric vehicles by making charging easily accessible and should provide the opportunity to access electricity as a fuel that is cleaner and less costly than gasoline or other fossil fuels in public and private locations.
(I) According to the State Alternative Fuels Plan analysis by the Energy Commission and the State Air Resources Board, light-, medium-, and heavy-duty vehicle electrification results in approximately 70 percent fewer greenhouse gases emitted, over 85 percent fewer ozone-forming air pollutants emitted, and 100 percent fewer petroleum used. These reductions will become larger as renewable generation increases.
(2) It is the policy of the state and the intent of the Legislature to encourage transportation electrification as a means to achieve ambient air quality standards and the state’s climate goals. Agencies designing and implementing regulations, guidelines, plans, and funding programs to reduce greenhouse gas emissions shall take the findings described in paragraph (1) into account.
(b) The commission, in consultation with the State Air Resources Board and the Energy Commission, shall 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 (Chapter 8.5 (commencing with Section 44258) of Part 5 of Division 26 of the Health and Safety Code), and reduce emissions of greenhouse gases to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050. Programs proposed by electrical corporations shall seek to minimize overall costs and maximize overall benefits. The commission shall approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, via a reasonable cost recovery mechanism, if they are consistent with this section, do not unfairly compete with nonutility enterprises as required under Section 740.3, include performance accountability measures, are in the interests of ratepayers as defined in Section 740.8, and are consistent with the plan developed pursuant to Chapter 4.1 (commencing with Section 25328) of Division 15 of the Public Resources Code.
(c) The commission shall review data concerning current and future electric transportation adoption and charging infrastructure utilization prior to authorizing an electrical corporation to collect new program costs related to transportation electrification in customer rates. If market barriers unrelated to the investment made by an electric corporation prevent electric transportation from adequately utilizing available charging infrastructure, the commission shall not permit additional investments in transportation electrification without a reasonable showing that the investments would not result in long-term stranded costs recoverable from ratepayers.
(d) This section applies to an application to the commission for transportation electrification programs and investments if one of the following conditions is met:
(1) The application is filed on or after January 1, 2016.
(2) The application is filed before January 1, 2016, but has an evidentiary hearing scheduled on or after July 1, 2016.