Electrical corporations: electric vehicle charging stations: multifamily housing properties., the official text

An act to add Section 740.27 to the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL'S DIGEST

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires each electrical corporation, not later than February 28, 2021, to file an advice letter for, and requires the commission, not later than June 30, 2021, to approve, a new tariff or rule that authorizes each electrical corporation to design and deploy all electrical distribution infrastructure on the utility side of the customer’s meter for all customers installing separately metered infrastructure to support charging stations, other than those in single-family residences. Existing law requires the commission 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, as specified.
This bill would require the commission, on or before March 1, 2027, to establish targets for each electrical corporation to install electric vehicle charging stations at multifamily housing properties. The bill would require the commission to ensure the targets reduce costs for all ratepayers, and to require electrical corporations to make annual progress reports and to provide to the commission corresponding maps that identify the proposed multifamily housing properties within its service territory where use will be highest based on distribution system planning and experience with electric vehicle charging station infrastructure. The bill would require the commission, in establishing the targets, to determine whether to impose certain requirements on an electrical corporation, including a requirement that an electrical corporation recover all costs, to the extent not covered by nonratepayer funding, for deploying the electric vehicle charging stations, including the costs for administration and implementation, as operations and maintenance costs rather than as capital costs.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of the bill would be a part of the act and therefore a violation of the bill’s requirements, or a violation of a commission action implementing the bill’s requirements, would be a crime, 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 a specified reason.

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 by deploying electric vehicle charging infrastructure to achieve the state’s climate goals and put downward pressure on electricity rates.
(b) Electrical corporations can facilitate the deployment of electric vehicle charging infrastructure to accelerate the electric vehicle market and expand the benefits from widespread electric vehicle adoption.
(c) Electrical corporation deployment of electric vehicle charging infrastructure has generated tens of thousands of charging ports in the state. San Diego Gas and Electric’s Power Your Drive pilot program, for example, deployed more than 3,000 charging ports at multifamily housing and workplaces, Southern California Edison’s Charge Ready pilot program deployed more than 2,700 charging ports at multifamily housing and workplaces, and Pacific Gas and Electric Company’s EV Charge Network pilot program deployed more than 4,700 charging ports at multifamily housing and workplaces.
(d) The need for electric vehicle charging infrastructure at multifamily housing and businesses was so great that the utility investment programs were extended. But the extended programs have reached capacity or are ending in 2026 due to regulatory decisions. Pacific Gas and Electric Company’s charging infrastructure program for multifamily housing and small businesses, for example, reached its full subscription and is no longer accepting applications.
(e) Multifamily housing is a market underserved by commercial electric vehicle charging companies. Approximately 30 percent of the residential customers of electrical corporations live in multifamily housing. Although approximately 80 percent of all electric vehicle charging in California occurs at home, less than 4 percent of total electric vehicle charging in the state occurs at multifamily housing.
(f) Multifamily housing residents lack access to convenient home charging and often rely on public direct current fast charging stations at higher cost compared to home charging, raising equity concerns. In addition, higher charging costs undermine the state’s transportation electrification goals.
(g) To achieve the state’s equity and climate goals, it is prudent to facilitate the deployment of electrical vehicle charging infrastructure at multifamily housing.
(h) Studies show that electric vehicle charging has increased electrical corporation revenues more than they have increased electrical corporation costs, leading to downward pressure on electricity rates for electrical corporation customers.
(i) Where no distribution system capacity upgrade is needed, deploying electric vehicle charging stations can lower costs for electricity customers.
(j) Managed charging may avoid the need for electrical distribution system capacity upgrades and additional resource adequacy.

SEC. 2.
Section 740.27 is added to the Public Utilities Code, to read:
740.27.
(a) For purposes of this section,
“multifamily housing” means residential housing with five units or more.
(b) (1) On or before March 1, 2027, the commission shall establish targets for each electrical corporation to install electric vehicle charging stations at multifamily housing properties. The commission shall ensure the targets reduce costs for all ratepayers.
(2) In establishing the targets, the commission shall determine whether to do, and may do, all of the following:
(A) Require each electrical corporation to focus on deploying electric vehicle charging stations in areas likely to have the highest use rates that provide benefits to ratepayers and to demonstrate how it plans to determine where use will be highest based on distribution system planning and experience with electric vehicle charging station infrastructure programs and investments.
(B) Require each electrical corporation to deploy electric vehicle charging stations at multifamily housing only if the electrical distribution system would support operation of the electric vehicle charging stations without a capacity upgrade. Each electrical corporation may use load management devices to manage charging at the electric vehicle charging stations to avoid a capacity upgrade and to reduce peak local electrical load or peak system electrical load.
(C) Require the electric vehicle charging stations deployed pursuant to this section to be networked and capable of being managed to reduce peak local electrical load or peak system electrical load.
(D) Authorize each electrical corporation to own, maintain, and manage the electric vehicle charging stations it deploys pursuant to this section, and to contract with a commercial electric vehicle charging company to manage electric vehicle charging station operations and payment processing for use of the electric vehicle charging stations. Electric vehicle charging stations installed pursuant to this subdivision may also be owned and managed by any other entity.
(E) Require that users of the electric vehicle charging stations be charged the retail electricity time-of-use rate.
(F) To the extent not covered by nonratepayer funding, require each electrical corporation to recover all costs for deploying the electric vehicle charging stations and associated equipment and facilities pursuant to this subdivision, including, but not limited to, the costs for administration and implementation, as operations and maintenance costs rather than as capital costs. This section does not affect recovery of costs incurred for capital investments by an electrical corporation in facilities and equipment on the electrical corporation’s side of the meter.
(3) The commission shall require each electrical corporation to annually report to the commission on its progress toward achieving the targets.
(4) The commission shall require each electrical corporation to provide to the commission corresponding maps that identify the proposed multifamily housing properties within its service territory where use will be highest based on distribution system planning and experience with electric vehicle charging station infrastructure.
(c) (1) The commission shall require each electrical corporation to submit an application for projects to support the targets established by the commission pursuant to subdivision (b). The commission shall review the application and approve, reject, or amend the application within 180 days of submittal by the electrical corporation. The commission may direct the electrical corporation to make necessary changes before resubmitting the application.
(2) The commission may extend the period for recovery of the costs for deploying the electric vehicle charging stations pursuant to subdivision (b) to the extent that the overall program described in subdivision (b) is a net benefit to ratepayers.
(d) For all installations of electric vehicle charging stations not performed by employees of an electrical corporation, the electrical corporation shall contract only with contractors using electricians with Electric Vehicle Infrastructure Training Program certification as provided in Section 740.20.
(e) Each electrical corporation shall leverage nonratepayer funding to the extent available to cover the costs of deploying the electric vehicle charging stations pursuant to this section.

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.