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SB-676 Transportation electrification: electric vehicles: grid integration.(2019-2020)

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Date Published: 07/05/2019 09:00 PM
SB676:v94#DOCUMENT

Amended  IN  Assembly  July 05, 2019
Amended  IN  Assembly  June 19, 2019
Amended  IN  Senate  May 15, 2019
Amended  IN  Senate  May 01, 2019
Amended  IN  Senate  March 27, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 676


Introduced by Senator Bradford
(Coauthors: Senators Dodd, Hill, Skinner, Stern, and Stone)

February 22, 2019


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


LEGISLATIVE COUNSEL'S DIGEST


SB 676, as amended, Bradford. Transportation electrification: electric vehicles: grid integration.
Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing board. boards. Existing law requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission (Energy 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. Existing law requires the PUC, in consultation with the Energy Commission and the State Air Resources Board, to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification to achieve specified results. Existing law requires the PUC to approve, or modify and approve, programs and investments in transportation electrification, including those that deploy charging infrastructure, through a reasonable cost recovery mechanism, under certain circumstances. Existing law requires the PUC, in an existing proceeding, PUC to consider facilitating the development of technologies that promote grid integration.
This bill would require the PUC, by December 31, 2020, in an existing proceeding, to establish strategies and quantifiable metrics to maximize the use of feasible and cost-effective electric vehicle grid integration, as defined, by January 1, 2030, based on the estimated electrical demand by customers of electrical corporations, community choice aggregators, and electric service providers for electric vehicle charging, as specified. The bill would require the PUC to reference the electric vehicle grid integration strategies in all relevant ongoing and subsequent proceedings that address issues of transportation electrification in any part and to identify how programs and investments that the PUC may approve will advance the achievement of the strategies. The bill would require the PUC, when executing its transportation electrification responsibilities, to consider how, or if, electric vehicle grid integration can mitigate any generation, transmission, or distribution costs, or increase the economic, social, or environmental benefits associated with transportation electrification, and to not foreclose future utilization of electric vehicle grid integration. The bill would require electrical corporations and community choice aggregators to include in specified filings provide to the PUC certain information relating to the electric vehicle integration strategies. The bill would require each local publicly owned electric utility serving more than 700 gigawatthours of annual electrical demand, in its integrated resource plan update adopted on and after January 1, 2020, to establish consider establishing electric vehicle grid integration strategies and quantify evaluating how its current existing and planned programs may further those strategies.
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 above provisions amend the Public Utilities Act, and the PUC would be required to issue an order, decision, rule, direction, demand, or requirement to implement those provisions, a violation of any of which would be a crime, this bill would impose a state-mandated local program. Further, because the bill would impose additional duties on local publicly owned electric utilities and community choice aggregators, which are local agencies, this bill would impose a state-mandated local program.
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 specified reasons.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

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

740.16.
 (a) (1) The Legislature finds and declares all of the following:
(A) State policy incentivizes and encourages the increased use of electric vehicles, and relies, in part, on the ratepayers of electrical corporations to fund policies intended to increase the usage of electric vehicles.
(B) Changes in electrical demand and generation have created escalating peak and low periods of electrical supply and demand, and the cost of wholesale electricity and electricity delivery during peak demand periods is typically greater than during other periods.
(C) It is feasible and practicable to adjust the period during which an electric vehicle charges, in part or in full, to reduce its cost impact during periods of peak demand or grid congestion, to utilize available renewable electric generation, to avoid curtailments of renewable electric generation, and to provide reliability services.
(D) Time of use Time-of-use rates for customers with electric vehicles can reduce costs or mitigate cost increases for all ratepayers due to increased usage of electric vehicles by incentivizing electric vehicle charging at periods of low demand and low grid congestion. Electric vehicle grid integration can provide benefits to all ratepayers in addition to time of use rates.
(2) It is, therefore, the policy of the state and the intent of the Legislature to maximize net ratepayer and grid benefits from transportation electrification and reduce costs or mitigate cost increases for all ratepayers due to increased usage of electric vehicles by accelerating electric vehicle grid integration and by ensuring that any investments in transportation electrification do not foreclose the electric vehicle grid integration potential of these investments.
(b) (1) For purposes of this section, “electric vehicle grid integration” means any action taken by a grid-connected electric vehicle, operator of a grid-connected electric vehicle, or electric vehicle supply equipment to alter method of altering the time, charging level, or location at which grid-connected electric vehicles charge or discharge, in a manner that optimizes plug-in electric vehicle interaction with the electrical grid and provides benefits or services to the electrical grid, ratepayers, the operator of a grid-connected electric vehicle, or site host. Such actions include, but are not limited to, actions that do and provides net benefits to ratepayers by doing any of the following:
(A) Increase Increasing electrical grid asset utilization.
(B) Avoid Avoiding otherwise necessary distribution infrastructure upgrades.
(C) Integrate Integrating renewable energy resources.
(D) Reduce Reducing the cost of electricity supply.
(E) Offer Offering reliability services consistent with Section 380 or the Independent System Operator tariff.
(2) “Electric Electric vehicle grid integration” integration strategies shall not require the use of any specific technology to achieve the policies furthered by actions under paragraph (1). technology.
(3) Electric vehicle grid integration may be achieved using multiple strategies, including, but not limited to, electrical rate design and the adoption of technology and customer services that help achieve the policies furthered by actions under provide net benefits to ratepayers pursuant to paragraph (1).
(4) The commission may redefine adopt a revised definition for “electric vehicle grid integration” in an through a new or existing proceeding for the purpose of coordinating electric vehicle grid integration. to replace the definition in paragraph (1). Any revised definition of “electric vehicle grid integration” adopted by the commission shall be applicable to load-serving entities, as defined in Section 380.
(c) By December 31, 2020, in an existing proceeding, the commission shall establish strategies and quantifiable metrics to maximize the use of feasible and cost-effective electric vehicle grid integration by January 1, 2030, based on the estimated electrical demand by customers of electrical corporations, community choice aggregators, and electric service providers for electric vehicle charging, consistent with all of the following:
(1) The electric vehicle grid integration strategies shall account for the effect of prevailing time-of-use rate schedules on forecasted rates on electricity demand from electric vehicle charging, and shall be capable of providing a wide range of services and benefits. charging.
(2) Expenditures on electric vehicle grid integration shall be in the best interests of ratepayers, as defined in Section 740.8. 740.8, and consistent with Section 451.

(3)Electrical corporations, community choice aggregators, and electric service providers shall cooperate to further the electric vehicle grid integration strategies established by the commission.

(4)In proposing and establishing the electric vehicle grid integration strategies pursuant to this section, the commission shall actively solicit input from and consult with interested parties, including, but not limited to, electric car manufacturers, electric fleet operators, and electric vehicle service providers.

(5)

(3) The electric vehicle grid integration strategies shall reflect the proportionate share of each electrical corporation’s, community choice aggregator’s, or electric service provider’s estimated increase in electrical demand attributable to electric vehicle charging, including from existing approved rates and programs.

(6)

(4) Electric vehicle grid integration shall be consistent with the transportation electrification goals described in Section 740.12.

(7)The commission may, in an existing proceeding, in consultation with the entities described in paragraphs (3) and (4), update the electric vehicle grid integration strategies at any time.

(5) The commission shall consider incorporating the National Institute of Standards and Technology’s reliability and cybersecurity protocols, or other equally protective or more protective cybersecurity protocols, into the electric vehicle grid integration strategies.
(d) As part of each local publicly owned electric utility’s integrated resource plan update adopted on and after January 1, 2020, pursuant to Section 9621, the local publicly owned electric utility shall do consider both of the following:
(1) Establish Establishing electric vehicle grid integration strategies that are in the best interests of ratepayers and that reflect the local publicly owned electric utility’s estimated electrical demand attributable to electric vehicle charging, as applicable.
(2) Quantify how the local publicly owned electric utility’s current Evaluating how its existing and planned electric vehicle grid integration programs, including its electrical rates and investments in transportation electrification, may to the extent feasible, further the electric vehicle grid integration strategies it has established, as applicable.
(e) In carrying out its responsibilities pertaining to transportation electrification, including, but not limited to, pursuant to Sections 740.2, 740.3, 740.8, 740.12, 740.13, and 740.14, the commission shall reference the electric vehicle grid integration strategies established pursuant to subdivision (c) in all relevant ongoing and subsequent proceedings initiated on and after January 1, 2020, that address issues of transportation electrification in any part and shall identify how programs and investments that the commission may approve will advance the achievement of the strategies. When approving, or modifying and approving, transportation electrification applications filed on and after January 1, 2020, the commission shall, to the maximum extent consistent with Section 451, give priority to those applications that assist in furthering the strategies for electric vehicle grid integration.
(f) In executing its responsibilities on transportation electrification, including, but not limited to, pursuant to Sections 740.2, 740.3, 740.8, 740.12, 740.13, and 740.14, the commission shall consider how, or if, electric vehicle grid integration can mitigate any generation, transmission, or distribution costs, or increase the economic, social, or environmental benefits associated with transportation electrification, and shall not foreclose future utilization of electric vehicle grid integration.
(g) Each community choice aggregator shall, in each of its integrated resource plans prepared pursuant to Section 454.52, quantify how the community choice aggregator’s one year after the commission establishes electric vehicle grid integration strategies pursuant to subdivision (c), report annually to the commission describing how its current and planned programs, rates, and investments in transportation electrification are expected to further the electric vehicle grid integration strategies adopted pursuant to subdivision (c). strategies.
(h) Each electrical corporation shall, in each of its applications to the commission for transportation electrification programs and investments filed pursuant to Section 740.12, quantify how the investments described in the application are expected to further the electric vehicle grid integration strategies adopted pursuant to subdivision (c).
(i) Each electrical corporation that files an application for programs and investments to accelerate widespread transportation electrification pursuant to Section 740.12 shall, in each of its load research report compliance filings and successor or alternative compliance filings submitted to the commission, report the electrical corporation’s annual measurable progress in furthering the electric vehicle grid integration strategies adopted pursuant to subdivision (c).
(j) The commission shall, in an existing proceeding, review each electrical corporation’s or community choice aggregator’s load-serving entity’s annual measurable progress in furthering the electric vehicle grid integration strategies adopted pursuant to subdivision (c), and may, if appropriate, issue recommendations to ensure reasonable progress toward achieving vehicle grid integration.
(k) Nothing in this section authorizes a delay of any new rate or program for electric vehicle charging or electric vehicle grid integration as to which consideration or approval is pending before the commission on or before January 1, 2020.
(l) As regards electrical corporations, this section shall only apply to electrical corporations that are required to file an integrated resource plan pursuant to Section 454.52.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because 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.