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ALJ/RMD/sid Date of Issuance 8/24/2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's own motion to consider alternative-fueled vehicle tariffs, infrastructure and policies to support California's greenhouse gas emissions reduction goals.

FILED

PUBLIC UTILITIES COMMISSION

AUGUST 20, 2009

SAN FRANCISCO, CALIFORNIA

RULEMAKING 09-08-009

ORDER INSTITUTING RULEMAKING

TO CONSIDER ALTERNATIVE-FUELED VEHICLE TARIFFS, INFRASTRUCTURE AND POLICIES TO SUPPORT CALIFORNIA'S GREENHOUSE GAS EMISSIONS REDUCTIONS GOALS

Title Page

ATTACHMENT A - Respondents and Load Serving Entities

ATTACHMENT B - California Energy Commission, California Independent System Operator, and California Air Resources Board Representatives for Service

ORDER INSTITUTING RULEMAKING

TO CONSIDER ALTERNATIVE-FUELED VEHICLE TARIFFS, INFRASTRUCTURE AND POLICIES TO SUPPORT CALIFORNIA'S GREENHOUSE GAS EMISSIONS REDUCTIONS GOALS

1. Summary

The Commission recognizes that many automakers will be introducing to California roadways electric charged vehicles in the next one to five years. 1 As a result of this market development, we are initiating this rulemaking to consider the impacts electric vehicles may have on our State's electric infrastructure and what actions this Commission should take. We must ensure that the charging of these vehicles does not have adverse impacts on our electric system in terms of reliability, while at the same time recognizing the benefits of these vehicles in achieving California's climate change goals.

This rulemaking seeks to consider tariffs, infrastructure and policies needed for California investor-owned electric utilities to ready the electricity system in a consistent, near-term manner for the projected statewide market growth of light-duty passenger plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV) throughout California. Other electric vehicle classes may be considered pending stakeholder input during this proceeding. We may also consider issues associated with natural gas vehicle market growth and any needed regulatory changes.

Our immediate goal is to review any current electric vehicle tariff schedules and facilitate electric vehicle charging infrastructure in the near-term to support a successful transition of a portion of the gasoline-powered vehicle fleet in California to electric vehicles. We intend to develop consistent statewide policies and standards to guide and encourage development of electric vehicle metering, home electric vehicle charging infrastructure, commercial and public charging infrastructure, tariff schedules, and, if advisable, incentive programs. Our efforts will be undertaken consistent with Commission and State policy goals, including reducing greenhouse gas emissions pursuant to Assembly Bill (AB) 32,2 reducing petroleum consumption, improving and optimizing electricity system asset utilization, expanding the use of renewable energy as a charging fuel for electric vehicles, and ensuring electric service reliability.

We intend to collaborate with other governmental entities with interests in this area and encourage their input and participation. We also intend to coordinate consideration of tariffs, infrastructure, and policy with issues considered in the ongoing Commission Smart Grid proceeding (Rulemaking (R.) 08-12-009). In the Smart Grid proceeding, we are considering issues associated with communication between the vehicle and utility or electric vehicle service provider.3 As an example of the level of coordination we envision, if the Smart Grid proceeding develops communication guidelines, we may apply them to electric vehicle charging infrastructure installation guidelines developed here.

1 One source has reported that 70% of automakers by market share will introduce electric vehicles in the near future. Pacific Gas and Electric Company, "The Perfect Storm for Electric Vehicle Market Growth in California," Commission Smart Grid Workshop, July 15, 2009, http://www.cpuc.ca.gov/NR/rdonlyres/3916875A-910E-40DB-A931-5B4BF37F1F55/0/SaulZambranoPGE.pdf

2 Transportation sources accounted for approximately 29% of total greenhouse gas emissions in the United States in 2006. Transportation is the fastest-growing source of greenhouse gas emissions in the United States, accounting for 47% of the net increase in total United States emissions since 1990. Transportation is also the largest end-use source of carbon dioxide (CO2), which is the most prevalent greenhouse gas.  These estimates of transportation greenhouse gas emissions do not include emissions from additional lifecycle processes, such as the extraction and refining of fuel and the manufacture of vehicles, which are also a significant source of domestic and international greenhouse gas emissions. Source: United States Environmental Protection Agency, http://www.epa.gov/OMS/climate/index.htm

3 Electric vehicle service providers, also known as electric vehicle service suppliers, are defined by the California Air Resources Board Low Carbon Fuel Standard to mean any person or entity that provides bundled charging infrastructure and other electric transportation services and provides access to vehicle charging to electric vehicle customers. California Air Resources Board, "Proposed Regulation to Implement the Low Carbon Fuel Standard Volume 1, Staff Report: Initial Statement of Reasons"
Appendix A at p. A-23/397, March 5, 2009.
http://www.arb.ca.gov/fuels/lcfs/030409lcfs_isor_vol1.pdf

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