HomeMy WebLinkAboutAgenda Report - April 20, 2022 C-16CITY OF
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CALIFORNIA
AGENDA ITEM Co/6
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Amending Electric Vehicle Strategy by Authorizing Pilot Electric Vehicle
Rebate Program for Lodi Electric Utility Customers
MEETING DATE: April 20, 2022
PREPARED BY: Business Development Manager
RECOMMENDED ACTION: Adopt a resolution amending the Electric Vehicle Strategy by authorizing a
Pilot Electric Vehicle Rebate Program for Lodi Electric Utility customers.
BACKGROUND INFORMATION: Lodi Electric Utility (LEU) seeks to amend its Electric Vehicle (EV) Strategy
to include a pilot rebate program for customers in an effort to advance the
adoption of zero emission vehicles in Lodi.
To prepare for such a program, the City's Business Development Manager interviewed local car dealerships in
Lodi and Stockton to answer questions concerning level of customer demand, obtain dealer perspective on
reasons underlying current local demand, and to gather thoughts on current incentives being offered by
manufacturers, and other government entities.
Car dealerships, including Sanborn Chevrolet, Lodi Chrysler Dodge Jeep Ram, and Big Valley Ford in
Stockton agreed that in order to substantially increase EV demand, EV industry improvements in driving range,
battery storage and publically accessible EV fast chargers throughout urban centers and at highway and
interstate locations were necessary. Lodi is starting to see the installation of EV fast chargers with the most
recent installation of ChargePoint stations in the Target shopping center on Kettleman Lane. Dealers also agreed
that strategic decisions made at the manufacturer level concerning model variation and cost for the lower and
middle income buyer would be required to generate a significant increase in EV demand.
All three dealerships agreed a local rebate offered by LEU could serve as a meaningful incentive, especially if
the rebate was simple for the customer to access, and expeditiously reimbursed. Therefore, staff are proposing
to offer LEU customers, on a first come, first served basis a rebate of $1,000 toward the purchase of a new or
used EV with the rebate increasing to $3,500 for income -eligible customers. Income eligible customers are those
customers who currently qualify for the City's SHARE low-income discount program.
Currently, Lodi has approximately 350 registered EVs. Should City Council approve this pilot rebate program,
LEU will join other NCPA members including Alameda Municipal Power, Redding Electric Utility, and Roseville
Electric who offer rebates ranging from $1,000 to $1,500.
APPROVED: Steve Sc h W a ba u e r
Stephen Schwabauer, City Manager
LEU, through its participation in the Low Carbon Fuel Standard (LCFS) Program, is required to contribute to the
California Clean Fuel Reward (CFR) Program which provides a point of sale rebate in the amount of $750 directly
to purchasers of eligible vehicles from dealerships enrolled in the CFR Program. Air Quality Management
Districts throughout California, including the San Joaquin Valley Air Pollution Control District, also offer purchase
rebates. Californians are also able to participate in the Clean Vehicle Rebate Project (CVRP) by taking advantage
of up to $4,500 for the purchase or lease of new, eligible zero -emission vehicles.
Should City Council approve this pilot rebate program, staff will collaborate with agencies and utilities offering
current rebates to research and implement best practices including terms and conditions, budget and marketing
efforts to facilitate a positive program outcome. It is anticipated the program, if approved, will launch
July 1, 2022.
FISCAL IMPACT: It is anticipated the pilot program will initially fund approximately 60 rebates
at a total cost of $135,000.
FUNDING AVAILABLE: Funds will be appropriated in the Low Carbon Fuel Standard Fund 503 as
part of the Fiscal Year 2022/23 budget planning process. This initial
funding will provide approximately 60 rebates.
Andrew Keys
Andrew Keys
Deputy City Manager/Internal Services Director
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Melissa Price for Astrida Trupovnieks
Business Development Manager
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Email: mprice@lodi.gov
Signature:
Email: sschwabauer@lodi.gov
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Email: akeys@lodi.gov
RESOLUTION NO. 2022-97
A RESOLUTION OF THE LODI CITY COUNCIL AMENDING THE
IMPLEMENTATION OF THE ELECTRIC VEHICLE STRATEGY BY
AUTHORIZING STAFF TO ESTABLISH A PILOT ELECTRIC VEHICLE
REBATE PROGRAM FOR NEW AND USED ZERO EMISSION AND LOW
EMISSION VEHICLES FOR LODI ELECTRIC UTILITY CUSTOMERS
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, the Lodi City Council authorized the initial Electric Vehicle Strategy in 2019,
which established EV charger rebates in the amount of $500 and $1,000 for Lodi Electric Utility
residential and commercial customers, respectively; and
WHEREAS, the EV strategy encouraged staff to conduct both short-term and long-term
planning to continue to reduce financial barriers to EV implementation, and to advance other EV
initiatives for City Council approval; and
WHEREAS, the EV strategy was amended in 2020 to increase EV Level 2 charger rebates
for up to $3,000 for commercial customers, and to extend an additional $3,000 rebate to offset
installation costs; and
WHEREAS, the implementation of this pilot rebate program is intended to provide data
necessary to determine if a rebate program advances the purchase of electric vehicles and EV
chargers in Lodi; and
WHEREAS, approximately 350 electric vehicles are registered in Lodi; and
WHEREAS, the number of EV registrations increased by approximately 60 vehicle
registration per year over recent years; and
WHEREAS, the pilot rebate program includes a $1,000 standard rebate and a $3,500
income restricted rebate to determine if a higher incentive for lower income buyers serves to
promote greater EV adoption among the lower income population; and
WHEREAS, staff has interviewed car dealerships in Lodi and Stockton to gain information
on local demand for electric vehicles, interest in their participation as an authorized dealership in
a point of sale or lease rebate program, and recommendations on how to achieve a successful
rebate program; and
WHEREAS, the LEU rebate will require a rebate program terms and conditions describing
the roles and responsibilities of the customer and Lodi Electric Utility; and
WHEREAS, the recommended rebate is based upon rebates offered by other municipal
electric utilities, GHG budget available, and an estimated number of customers who may use the
rebate program; and
WHEREAS, the Lodi City Council will be asked to approve a budget appropriation to
implement the rebate program during the FY 2023 operating budget process.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby authorize
amending the implementation of the City's EV strategy to include an EV rebate program for new
and used zero emission and low emission vehicles for Lodi Electric Utility customers in the amount
of $1,000 for standard rebates and $3,500 for income -restricted rebates.
Dated: April 20, 2022
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I hereby certify that Resolution No. 2022-97 was passed and adopted by the City Council of the
City of Lodi in a regular meeting held April 20, 2022, by the following vote:
AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN COUNCIL MEMBERS — None
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OLIVIA NASHED
City Clerk
2022-97