Loading...
HomeMy WebLinkAboutAgenda Report - September 18, 2019 C-16AGENDA ITEM c-lb Crrv on Loor Couxcrr, C onnMUNrcATIoN AGENDA TITLE: MEETING DATE: September 18,2019 PREPARED BY: Business Development Manager Adopt Resolution Authorizing the lmplementation of an Electric Vehicle Strategy to Achieve Air Quality Goals and Approve Electric Vehicle lnfrastructure Rebates ($75,ooo) REGOMMENDED ACT¡ON Adopt resolution authorizing implementation of an Electric Vehicle Strategy to achieve air quality goals and approve Electric Vehicle lnfrastructure Rebates, in the amount not to exceed $75,000 BACKGROUND INFORMATION: lmprovements in electric vehicle (EV) technology coupled with increasing interest in private EV infrastructure investments offer a significant opportunity for the City of Lodi to demonstrate its commitment to air quality and customer service by advancing EV infrastructure opportunities and increased EV integration in Lodi. The electrification of transportation is a core strategy to achieve air quality goals, both locally and statewide. State initiatives and new programs also aim to address barriers to zero emission mobility for low income and disadvantaged communities. Consequently, staff recommends the City develop a local EV strategy to plan and support EVs. The City's current EV program involves the installation of six public chargers, and the establishment of an EV charging rate to electric customers. Customers require a separate charger, permit and meter to take advantage of the EV charging rate of $0.1428 per kWh during the EV charging period, and $0.3360 per kWh during the non-EV charging period. Currently, the City provides power to 10 residential chargers, each on a separate meter with the EV rate. Staff seeks to expand the City of Lodi EV program by developing an EV strategy that includes rebates for infrastructure and installation, education and outreach, and further planning. The approximate cost of a Level 2 (240 volt charger) is $1,000 for a residential charging station. The permit and installation of a charging station adds approximately $2,000 to the cost. The approximate cost of a Level 2 charger in a commercial setting such as a retail center, hotel, parking lots, or universities range from $1,500 to $3,000. The permit and installation of a charging station adds approximately $3,000 to $6,000 to the cost. These costs are within the range published by the Department of Energy. The rebates given below are intended to offset these costs, and are in line with rebates offered by other members of NCPA. Education and outreach will involve extensive website information, a utility billing insert, and an EV Ride and Drive event in the Spring of 2020. The City's third-party administrator for energy efficiency, ESG, will administer the applications and the approval process in the same way it administers the traditional energy efficiency rebates and direct install program. Well-researched terms and conditions will apply to the application and incentive program. APPROVED: phen S uer, City Manager Adopt Resolution Authorizing the lmplementation of an Electric Vehicle Strategy to Achieve Air Quality Goals and Approve Electric Vehicle lnfrastructure Rebates ($75,000) September 18,2019 Page 2 of 2 ln order to advance EV integration in Lodi, the strategy will accomplish the following: 1. Short-term incentives to reduce the financial barriers to EV implementation; 2. Setting targets for EV and charger deployment in later years based on experience; 3. Education and outreach; 4. Coordination with key partners; 5. Long-term planning for EV charging and fleet initiatives. The chart below provides recommended rebate amounts, and estimated participation rates. The program will allow not more than two rebates per electric account holder. Year 1 Residential Rebates for Level 2 Charqers $500 Residential Permit and lnstallation Rebates $500 Commercial Rebates for Level 2 or DC Fast Charqers $1.000 Commercial Permit and lnstallation Rebates $1,000 Number of Residential Rebates 25 Number of Commercial Rebates 11-13 Total lncentives $50,000 EV Ride and Drive Event and other educational activities $25,000 Total Short-Term Stratesv $75,000 The remaining components of the strategy, particularly setting targets for EV rebates and charger deployment, coordination with partners, and longterm planning for EV fleet initiatives will be planned and implemented as the City and other municipal electric agencies gain experience and share information. FISGAL IMPAGT: Funding not to exceed $75,000 in Year One. Funding for the incentives ($50,000) is derived from Greenhouse Gas Funds (GHG) and is approved in the FY19/20 electric operating budget. Funding for outreach and education, including the EV Ride and Drive Event ($25,000), will also be derived from GHG Funds. Should the marketing efforts extend to disadvantaged income groups, a portion of the Public Benefits Fund is available in the FY20 electric operating budget for customer programs. FUNDING AVAILABLE: Public Benefits Account 50465001-72303 and GHG Account 50862500-72450 Andrew Keys Deputy City Manager/lnternal Services Director 6e Astrida Trupovnieks Business Development Manager RESOLUTION NO. 2019-196 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE IMPLEMENTATION OF AN ELECTRIC VEHICLE STRATEGY TO ACHIEVE AIR QUALITY GOALS AND APPROVING ELECTRIC VEHICLE I N FRASTRUCTU RE REBATES WHEREAS, the City of Lodi recognizes that an electric vehicle strategy is a key component for advancing the deployment of zero emission and low emission vehicles and achieving adopted greenhouse gas emissions reduction targets; and WHEREAS, to maximize the benefit of potential near-term EV investments and opportunities, staff is directed to initiate near-term priority EV initiatives that will define and facilitate private EV infrastructure investment; and WHEREAS, the implementation of near-term strategies are intended to serve as groundwork to provide data necessary to improve strategy for the purpose of expanding EV participation in Lodi; and WHEREAS, only ten residential customers of Lodi Electric Utility have separately- metered charging stations, and 160 electric vehicles are registered in Lodi; and WHEREAS, electric vehicle adoption depends upon convenient access to charging, and the ability to power electric vehicles is more cost-efficient with a Level 2 charger; and WHEREAS, the current cost of an EV Level 2 charger and the installation thereof may be cost prohibitive, and the rebates will serve to offset costs; and WHEREAS, the website information and utility bill insert will presage the EV Ride and Drive event, a matchup of interested and curious drivers with the experience of driving a zero emissions vehicle. \ NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby authorize the implementation of an electric vehicle strategy comprised of rebates of chargers, rebates towards installation costs, education and outreach, an EV Ride and Drive event, and a billing insert, in an amount not to exceed $50,000 for incentives and an amount not to exceed $25,000 for outreach and education. 3:1"=1===:"j]iTi::]3:3!13================================================ I hereby certify that Resolution No. 2019-196 was passed and adopted by the City Council of the City of Lodi in a regular meeting held September 18, 2019 by the following vote: AYES: COUNCIL MEMBERS - Johnson, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - Mounce ABSTAIN: COUNCIL MEMBERS - None NIFER Clerk 201 9-1 96 RRAIOLO