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HomeMy WebLinkAboutAgenda Report - May 6, 2020 C-08AGENDA ITEM G.O8 Crrv op Lont Courucrr CouuuwIcATIoN AGENDA TITLE: MEETING DATE PREPARED BY: Adopt Resolution Amending the lmplementation of the Electric Vehicle Strategy by Authorizing Staff to lncrease Commercial Rebate Amounts, and Reallocate Electric Vehicle Ride and Drive Event Funds to Other PromotionalActivities, As Necessary May 6,2020 Business Development Manager RECOMMENDED ACTION Adopt resolution amending the implementation of the electric vehicle strategy by authorizing staff to increase commercial rebate amounts, and reallocate electric vehicle ride and drive event funds to other promotional activities, as necessary. BACKGROUND INFORMATION: On September 18, 2019, the City Council adopted a resolution implementing an electric vehicle strategy to promote the purchase of electric vehicles in Lodi by offering residential and commercial rebates towards the purchase of chargers and installation. The resolution also approved the expenditure of funds for an EV Ride and Drive Event, and other educational activities. This agenda item seeks City Council approval to increase the commercial rebates from $1,000 per charger, and $1,000 for installation to $3,000 per charger, and $3,000 per installation. To date, one commercial account has been provided a rebate. The reason for this low participation rate cannot be readily determined. However, a review of the commercial rebates offered by other NCPA members reveals a higher incentive for commercial customers. The recommended increase to $6,000 per commercial customer is the median incentive across NCPA members who offer electric vehicle incentives. Additionally, in the current social distancing environment created by COVID19, staff recommends the EV Ride and Drive Event previously approved by City Council not take place. lnstead, staff recommends City Council give the City Manager the authority to reallocate these funds for additional EV rebates and an increased public information campaign, as necessary. Should social distancing protocols be revised later in the year, an EV Ride and Drive Event could be planned and implemented. The EV strategy approved by City Council on September 18, 2019 is reiterated below. The recommendation by staff to increase EV and charger deployment incentives is reflected in activity #2 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; and 5. Long-term planning for EV charging and fleet initiatives. AppRovEo. Steve Schwabauer Adopt Resolution Amending the lmplementation of the Electric Vehicle Strategy by Authorizing Staff to lncrease Commercial Rebate Amounts, and Reallocate Electric Vehicle Ride and Drive Event Funds to Other Promotional Activities, As Necessary May 6, 2019 Page 2 of 2 The chart below compares original EV data w¡th recommended changes Year 1 Adiustments Residential Rebates for Level 2 Chargers $500 $500 Residential Permit and lnstallation Rebates $500 $500 Commercial Rebates for Level 2 or DC Fast Chargers $1,000 $3,000 Commercial Permit and lnstallation Rebates $1.000 $3,000 Total lncentives $50,000 $50.000 EV Ride and Drive EvenUAdditional lncentives/Promotion*$25.000 $25.000 TotalStrateqv $75.000 s75.000 * Reallocate as needed FISCAL IMPACT: 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 FY19l20 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. The FY 20121 electric operating budget request includes this funding request. FUNDING AVAILABLE: Public Benefits Account 50465001-72303 and Greenhouse Gas Account 50862500-72450. And rew Keys Andrew Keys Deputy City Manager/lnternal Services Director Steve Schwabauer Stephen Schwabauer City Manager