C A L I F O R N I A E N E R G Y C O M M I S S I O N Transforming California’s Transportation Sector and Potential Effects on the Power Sector PANC Monthly Luncheon Meeting February 17, 2015 Commissioner Janea A. Scott California Energy Commission 1

C A L I F O R N I A E N E R G Y C O M M I S S I O N Commission Responsibilities Energy Analysis: develop key energy metrics and archive historic data Permitting: review and permit thermal power plants >= 50 megawatts (MW) R&D : research and development program administration (e.g. PIER and EPIC) Energy Efficiency: promulgate appliance and building energy efficiency regulations (Title 20 & 24) Transportation: support deployment of alternative vehicles and renewable fueling infrastructure Renewable Energy: administer renewable incentive programs, provide certification, and verification of renewable generation, and promulgate POU RPS regulations Contingency Planning: state energy emergency planning and oversight Integrated Energy Policy Report: publication of the “IEPR,” the State’s official source of energy policy guidance 2

C A L I F O R N I A E N E R G Y C O M M I S S I O N California Transportation: Nation-State Statistics Population: 38 million GDP: $2.0 trillion - 8 th largest global economy GHG Emissions: 458 MMT (2012) –Transportation accounts for 40 % of all GHG emissions Air Pollution: Severe Non-Attainment for Ozone –San Joaquin and South Coast Air Basins Vehicles: 27.5 million cars million trucks Annual Fuel Consumption: 18.1 billion gallons –14.5 billion gallons gasoline billion gallons diesel Primary Roadways: 170,000 miles 3

C A L I F O R N I A E N E R G Y C O M M I S S I O N Key California Energy Policies & Goals Assembly Bill legislation reducing GHG emissions to or below 1990 levels by Executive Order S-3-05 GHG Emissions Issued by Gov. Schwarzenegger, establishes goal to reduce GHG emissions to 80% below 1990 levels by Energy Action Plan’s Preferred Loading Order Issued in 2003 and 2008, prioritizes cost effective investments in: 1st) EE and DR; 2nd) renewables and DG; and 3 rd ) clean fossil fuel sources and infrastructure improvements. Clean Energy Jobs Plan Established in 2010 by Gov. Brown, directs production of 20 gigawatts (GW) of new renewables by 2020, 12 GW of distributed energy, and 6.5 GW of CHP. Senate Bill X legislation requiring all electricity retailers to meet 33% of retail sales with renewable energy resources by CPUC Energy Efficiency Strategic Plan Sets efficiency goals, including zero net energy (ZNE) goals for new homes by 2020, and for new commercial buildings by 2030 Executive Order B Green State Buildings Issued by Gov. Brown, directs efficiency improvements in new or renovated state buildings larger than 10,000 square feet; sets ZNE and GHG reduction goals. Governor Brown’s ZEV Executive Order (B ) Issued by Gov. Brown, sets long-term target of reaching 1.5 million zero-emission vehicles (ZEV) by 2025; establishes goal to reduce GHG emissions from transportation sector to 80% below 1990 levels by Governor Brown’s Inaugural Address January 2015 By 2030: 1) Increase from one-third to 50 percent our electricity derived from renewable sources; 2) Reduce today’s petroleum use in cars and trucks by up to 50 percent; and 3) Double the efficiency of existing buildings and make heating fuels cleaner.

C A L I F O R N I A E N E R G Y C O M M I S S I O N Support for Zero-Emission Vehicles Governor’s Zero-Emission Vehicle Action Plan goal of 1.5 million zero-emission vehicles in 2025 Greater adoption will require: –Additional incentives –Strategic investments in infrastructure and planning –More directed research and innovative funding partnerships Fuel pathways for zero- and near-zero vehicles include: –Natural gas –Electric drive –Hydrogen fuel cell electric drive –Hybrid and range extender combinations 5

C A L I F O R N I A E N E R G Y C O M M I S S I O N Advanced Technology Funding 6 Electric Program Investment Charge (EPIC) Investment Plan makes $388 M available Supports research and development of pre-commercial technologies in the electricity sector Alternative and Renewable Fuel and Vehicle Technology Program (ARFVTP) Up to $100 M annually Invests in a portfolio of alternative low-carbon and renewable fuels and advanced vehicle technologies

C A L I F O R N I A E N E R G Y C O M M I S S I O N Alternative Renewable Fuel and Vehicle Technology Program (ARFVTP) Established by Assembly Bill 118 (Nunez, 2007) Funding extended through January 1, 2024 by Assembly Bill 8 (Perea, 2013) “…develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies.” (Health and Safety Code Section 44272(a)) 7

C A L I F O R N I A E N E R G Y C O M M I S S I O N Investing in a portfolio of projects that have the potential to be transformative 8 Investment Areas Funding Amount (in millions) Percent of Total (%) Number of Awards Biofuels$ Electric Drive$ Natural Gas$ Hydrogen$ Workforce Development$25555 Market & Program Develop.$14317 Total$

C A L I F O R N I A E N E R G Y C O M M I S S I O N Existing Agreements: Current through Jan. 15, 2015

C A L I F O R N I A E N E R G Y C O M M I S S I O N Total EVSE Funding: $38.3 million Total Funded= 9,369 chargers Commercial= 3,373 Residential= 5,127 Workplace= 756 DC Fast = Plus 21 Regional Readiness Planning Grants = $5.1 M Electric Vehicle Support Total CVRP Support: = $49 million Over 21,000 vouchers

C A L I F O R N I A E N E R G Y C O M M I S S I O N If you build it, they will come… 120,000 PEVs 20 models+ 5,473 public charging outlets and 170 DC Fast Chargers 21 Regional PEV Readiness Plans to California …. 11

C A L I F O R N I A E N E R G Y C O M M I S S I O N PEV Sales Through Dec. 2014

C A L I F O R N I A E N E R G Y C O M M I S S I O N Following Recent Developments: CPUC Regulatory Proceeding December 2014 Decision: Establishes a balancing test to evaluate utility proposals: “weighs benefits of utility ownership of charging infrastructure against competitive limitation…” Current Utility Proposals SDG&ESCEPG&E # of Chargers5,50030,00025,000 Cost$103M$346.1M$654.8M Market Segments Multi-unit Dwellings and Workplaces Multi-unit Dwellings, Workplaces, and Public Facilities

C A L I F O R N I A E N E R G Y C O M M I S S I O N Incubating Innovation in Medium and Heavy- Duty Advanced Technology Vehicles 38 projects to demonstrate advanced technologies, including electric, hybrid electric, fuel cell, and advanced natural gas engines Over $70 million to design, develop, and deploy medium- and heavy-duty range-extended and all electric drive 14

C A L I F O R N I A E N E R G Y C O M M I S S I O N Supporting Manufacturing in California 18 manufacturing projects, primarily for electric drive-related batteries, components, and vehicles ARFVTP: $4.1M to Motiv Power Systems Purpose: Design & construct a production line in Silicon Valley to assemble medium-and heavy-duty all electric drive trucks and shuttles 15

C A L I F O R N I A E N E R G Y C O M M I S S I O N Aligning Clean Technology Investments with Economic Development $25 million invested in 39 workforce training agreements to help develop skills and knowledge in clean technology ARFVTP: $756,000 to Tesla Motors Purpose: Training in advanced manufacturing techniques at Tesla’s Fremont factory. 16

C A L I F O R N I A E N E R G Y C O M M I S S I O N Growth of Electric Vehicle Charging Presents Both Opportunities and Challenges to the Electric Grid Vehicle to Grid Integration Technologies and Electric Vehicle Batteries: Opportunities to reduce impact of power supply fluctuations, store energy, and reduce magnitude of fast ramping needed from baseload sources. Potential challenges are related to impact vehicles may have on electric grid distribution infrastructure

C A L I F O R N I A E N E R G Y C O M M I S S I O N Electric Program Investment Charge (EPIC) Created by CPUC in 2011 Funded by rates charged to electricity customers of PG&E, SDG&E, and SCE “…to provide public interest investments in applied research and development, technology demonstration and deployment, market support, and market facilitation, of clean energy technologies and approaches…” ( CPUC Decision )

C A L I F O R N I A E N E R G Y C O M M I S S I O N Demonstration Projects to Advance Vehicle To Grid and Vehicle Battery Integration LA Air Force Base Activities (Full V2G Demo and Battery Agreement) Vehicles and charging stations on site, evaluating both new and used electric vehicle batteries, actual performance data for warranty, estimating battery 2 nd life potential Moffett Field (Army/PG&E Demo) Expanded use for electric vehicles, vehicle to building, additional grid services (demand response, spinning reserve)

C A L I F O R N I A E N E R G Y C O M M I S S I O N Lawrence Berkeley National Laboratory Proposed award of $1,993,355 To develop and demonstrate a smart charging control system for 50 of Alameda County’s fleet PEVs and corresponding ChargePoint charging stations in 10 locations throughout the country

C A L I F O R N I A E N E R G Y C O M M I S S I O N Proposed award of $1,495,650 To locate seven to nine vehicles consisting of Nissan LEAFs and Honda Accord Plug-in Hybrid Electric Vehicles with bi- directional capability at 7 locations on and near the University of California San Diego campus. NRG Energy, Inc.

C A L I F O R N I A E N E R G Y C O M M I S S I O N Proposed award of $1,989,432 To develop and deploy advanced smart and bidirectional PEV charging infrastructure that will enable smart charging, vehicle-to-building, and vehicle to grid to support demand response participation. University of California Los Angeles

C A L I F O R N I A E N E R G Y C O M M I S S I O N Adoption of IEPR recommendations will be considered by Energy Commission next week Key recommendations for action Provide joint agency forum to continue exploring smart charging options and opportunities for integration Move forward with planned VGI research, development and demonstration proposed in the EPIC Investment Plan Assist in implementing activities highlighted in CAISO Vehicle-Grid Integration Roadmap Moving Forward: 2014 IEPR Recommendations Transportation Nexus with the Electricity Sector

C A L I F O R N I A E N E R G Y C O M M I S S I O N Thank You Janea A. Scott, Commissioner California Energy Commission (916)