California Transportation Electrification Activities Background and Context for VGI Working Group Launch Meeting August 19, 2019

Vehicle-Grid Integration (VGI) is crucial to meeting the state’s transportation electrification goals The growing load from electric vehicle (EVs) could adversely affect the electric grid if not managed Grid services must be balanced with drivers’ needs SB 350 requires electricity as a transportation fuel to be a lower-cost option than conventional fuels Managed EV charging and discharging could help meet higher renewable generation procurement requirements and emission reduction goals Two-way communication between EVs and grid managers can provide incremental benefits to drivers and the grid at large

CPUC in 2018 initiated a new rulemaking to provide clear guidance for future IOU TE investment programs The DRIVE OIR (R.18-12-006) directs the CPUC to identify a clear role for IOUs in meeting statewide TE goals Informed by statewide goals for ZEV adoption, GHG reduction and air quality improvement and the CEC’s AB 2127 Infrastructure Deployment Strategy Align with other state and local policies and programs Improve access to charging for all ratepayers Encourage third-party investments Explore emerging issues such as micromobility, car- and ride-sharing services, and autonomous vehicles Provide grid benefits and reduce the cost of electricity as a transportation fuel Launch a new interagency working group to help identify and scale the value(s) of VGI

VGI is an interagency effort beyond this new Working Group California VGI Roadmap Published in 2014 as the core statewide approach to enabling vehicle-grid services Currently being updated by the CEC, in collaboration with CARB, CPUC, CAISO, and GO-Biz to incorporate new transportation segments and consumer-orientation 2017 VGI Communication Protocols Working Group Staff recommended hardware requirements to ensure infrastructure is capable of high-level communication Submetering Identify strategies to facilitate submetering to reduce the cost of implementing EV- specific rates and other VGI use cases Infrastructure deployment Increase access to charging options for all Californians while ensuring growing EV loads do not adversely affect the grid

Stakeholder efforts since 2017 to lay new VGI groundwork CEC-led VGI Roadmap Research & Symposiums (2017-Present) Synthesizing R&D investment lessons in coordination with DER Research Roadmap Identifying strategies to prioritize and implement actions across stakeholders Firming links between research, deployment planning, and infrastructure assessments CAISO ESDER 3 implementation (2019-20) and ESDER 4 policy launch (2019) Allows the use of submeters to separately calculate and value EV load curtailment Identifying parameters that better reflect DER operational characteristics and how to qualify variable-output DERs Gridworks-led VGI initiative and framing document (2018-2019) Evaluated potential grid benefit valuation methods Identified data gaps and potential resources to fill them Compiled a literature review of recent VGI value studies

Definition of VGI VGI should ensure increasing load from electric vehicles is helping the state meet its GHG and renewable energy goals while providing grid benefits SB 676 (Bradford, 2019) proposes to define VGI as: “any 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 net benefits to ratepayers by doing any of the following: Increasing electrical grid asset utilization Avoiding otherwise necessary distribution infrastructure upgrades Integrating renewable energy resources Reducing the cost of electricity supply Offering reliability services consistent with Section 380 or the ISO tariff” This legislation has not been adopted and the definition is still in flux. Also, the CPUC has authority to modify the definition above in the current version of the bill

New VGI Working Group Scope defined in DRIVE OIR The DRIVE OIR asks the new interagency working group to build upon prior and ongoing efforts to, at a minimum: Identify what VGI use cases can provide value now, and how that value can be captured Evaluate how the value of VGI use cases compare to other storage or distributed energy resources Provide policy recommendations to the CPUC if any changes are to allow additional use cases to be deployed in the future

New VGI Working Group Scope (continued) The work plan should leverage existing resources from the 2017 VGI Communication Protocol Working Group, the VGI Roadmap update effort, and other interagency efforts to identify, capture, and scale the value of VGI Costs and benefits of V1G and V2G use cases should be evaluated Out of Scope: Pros and cons of specific communication pathways Technical interconnection requirements (i.e. Rule 21, which is being revised through CPUC docket R.17-07-007)