Loading...
HomeMy WebLinkAbout2017-07-25; City Council; ; Public hearing and resolution amending the Master Fee Schedule to establish an Electric Vehicle Charging FeeSchedule (which is reviewed and approved annually) would provide the flexibility to ensure alignment with future demand and cost of service. Policy Background The General Plan Sustainability Element references the city's 2011 greenhouse gas emissions inventory in noting that "the transportation sector was the largest source of emissions, generating approximately 273,745 metric tons of C02e, or 39 percent oftotal 2011 emissions. Transportation sector emissions are the result of diesel and gasoline combustion in vehicles traveling with trips either entirely within the boundaries of Carlsbad, or with one trip-end in the city." General Plan Policy 9-P.2 states the city's intention to "continue efforts to decrease use of energy and fossil fuel consumption in municipal operations, including transportation .... " General Plan Policy 3-P.17, included in the General Plan Mobility Element, notes that the city will "consider innovative design and program solutions to improve the mobility, efficiency, connectivity, and safety of the transportation system ... [and that] innovative solutions include ... electric and solar power energy transportation systems .... " Carlsbad's Environmental Guiding Principles recognize the importance of promoting efficient transportation and the use of low emission fuel sources, and articulate the city's support for programs that optimize the use of low-emission alternative fuel vehicles. The 2017 City Council Goals include an aspiration to become a leader in multimodal transportation systems and creative approaches to moving people and goods through and within Carlsbad. This goal is directly supported by the city's efforts to improve transportation sustainability and the cost-effective provision of electric vehicle charging infrastructure. The City of Carlsbad Climate Action Plan (CAP} includes greenhouse gas reduction measures, including a measure to promote an increase in the amount of Zero-Emissions Vehicle miles traveled from a projected 15 percent to 25 percent of total vehicle miles traveled by 2035. A Zero-Emissions Vehicle (ZEV) is a vehicle that emits no tailpipe pollutants from the on board source of power, such as electric vehicles, fuel cell vehicles, and plug-in hybrids (when operating in electric mode). And finally, the city's Sustainability Guiding Principles recognize that developing a sustainable community is based on employing cost-effective programs. Expert Recommendations To deliver on the city's CAP commitment to prepare a community-wide EV charging station siting plan, The City of Carlsbad Electric Vehicle Supply Equipment (EVCS) Infrastructure Assessment (EVCS Siting Recommendations Report) was prepared by the Center for Sustainable Energy in August 2015. That report evaluated the feasibility, and prioritized the suitability of installing EV charging stations at 21 unique City of Carlsbad properties. The report included a 2 Page 140 variety of policy recommendations, including that the city consider the fundamental question of whether it wants to implement a fee for EV charging, or offer it for free. Plug-in San Diego is a grant-funded partnership between the Center for Sustainable Energy and SAN DAG, which provides technical assistance in support of EV adoption and implementation. The city consulted Plug-In San Diego in 2016, requesting their assistance in evaluating market rates for EV charging in the San Diego region, and to solicit recommendations for pricing of EV charging services. In August 2016, Plug-in SD provided the following recommendations regarding the establishment of a Carlsbad EV Charging Fee: 1. Be low enough to encourage frequent use, 2. Fully cover operational costs, 3. At least partially address capital cost recovery, 4. Plan for flexibility in future pricing to match demand. As demonstrated below, and based upon the city's experience with EV charging at Alga Norte Community Park, an EV Charging Fee of $0.35/kWh is expected to meet the city's operational costs and recover approximately 50% of capital costs over the life of the EV charging station equipment. As proposed, the fee encourages frequent use by being comparable to rates charged across the region and state. To augment the market analysis prepared by Plug-in SD, city staff surveyed fees charged by municipalities and other public entities for EV charging throughout California. Our findings show that a broad range and variety of pricing schemes are being deployed across the state with fees ranging from $0 to $2 per hour, and/or $0 to $0.59/kWh. Among the surveyed agencies that do charge, per kWh fees range from $0.20/kWh to $0.59/kWh. This point is further supported by comparing the fuel economy of gasoline driving versus electric vehicle driving. Assuming an average gasoline powered car gets 25-mpg and pays $3.00 per gallon for fuel; a per mile cost of $0.12 is achieved. For the electric vehicle, assuming a range of 4 miles per kWh and a fee of $0.35/kWh results in a per mile cost of $0.0875; a 27% cost incentive over gasoline driving. And finally, given the city's practice of reviewing and adopting its Master Fee Schedule on an annual basis, adequate flexibility is ensured to allow future pricing to match demand, as well as to respond to any fluctuations in operational and capital costs. Recommended EV Charging Fee: $0.35 per kilowatt-hour {$0.35/kWh) The ChargePoint EV charging station at Alga Norte Community Park can be programmed by city staff to require the collection of user fees. Users would be required to activate a ChargePoint membership account via the ChargePoint mobile app or by calling ChargePoint driver support and linking to a credit card or PayPal account. Fee payment would be made by the user to Charge Point at the time of use. The city would then receive a monthly remittance from ChargePoint. 3 Page 141 Assessing a fee of $0.35/kWh for Electric Vehicle Charging would meet the city's operating costs and would achieve recovery of approximately 50% of capital costs over the life of the equipment. The recommended fee is comprised of the components outlined, as follows: Cost of Electricity: $0.21/kWh The electricity rate paid by the city for EV Charging at Alga Norte Community Park is $0.21 per kWh (including electricity delivery and generation charges, taxes and fees). Cost of Network Services & Cost of Warranty: $0.061/kWh When the city purchased its EV charging station in 2015, three (3) years of ChargePoint Network Services and a five (5) year Assure Warranty were included in the purchase price. Network services allow charging station data and payments to be transmitted to ChargePoint, and for station operations to be monitored and managed remotely by city staff. The Assure Warranty guarantees 98% charging station uptime and one calendar day response time for all service calls. Fees for these bundled services were not specified in the purchase price; however, current pricing totals $1,115 per year. ChargePoint data for 2017 indicates a 6.4 percent usage increase at the Alga Norte EV charging station. As such, approximately 18,000 kWh of EV charging is expected to occur at Alga Norte Community Park in 2017. Dividing the annual cost of services ($1,115) by the projected number of kWh (18,000) results in a per kWh cost of $0.061. 50% Capital Cost Recovery: $0.044/kWh The City purchased its EV charging station for $19,900, installed. Subtracting the value of the bundled services discussed above, the capital cost of the installation was $15,910. Assuming a 10-year equipment lifespan, a per kWh fee of $0.044 would achieve a 50% cost recovery on the capital cost ($7,955). Payment Processing Fee (10%): $0.035/kWh When customer payments are required at a ChargePoint charging station, a 10- percent Payment Processing Fee is applied to each charging session. In order to fully recover the city's direct operating cost of $0.315 per kWh, $0.035 per kWh should be added to cover the ChargePoint Payment Processing Fee. Fiscal Analysis No funding is being requested at this time. Assuming the projected 2017 usage of 18,000 kWh, and operating costs of $0.315/kWh, it is anticipated that the city would recover annual costs totaling approximately $5,670 if a $0.35/kWh fee were to be charged to the users of the city's existing charging station at Alga Norte Community Park. Revenue generated would reimburse the General Fund for expenditures made from the Parks and Recreation Operating Budget for Alga Norte Community Park. 4 Page 142 Next Steps Should the Council choose to establish the recommended EV Charging Fee, the fee would become effective on September 1, 2017, concurrent with the 2017-18 Master Fee Schedule. The city will proceed with installing the below-ground electrical infrastructure for EV charging stations at the Oak Street Parking Lot and Stagecoach Park Parking Lot pursuant to the approved contract with EVGO. Once complete, the city will proceed with the installation of above-ground charging stations at those locations. If the stations are owned by the city, they will be subject to the adopted EV Charging Fee. However, if a third party vendor is contracted to furnish and operate the stations, user fees may be determined during contract negotiations with the city. Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification Information regarding public notification of this item such as mailings, public hearing notices posted in the newspaper and on the city website are available in the Office of the City Clerk. Should the City Council decide to adopt the proposed fee, users of the city's EV charging station and the general public will be provided with notice via on-site signage and on line communications in advance of the fee's effective date. Exhibits l. A Resolution of the City Council of the City of Carlsbad, California, Amending the Master Fee Schedule to Establish an Electric Vehicle Charging Fee 5 Page 143 Exhibit 1 RESOLUTION NO. 2017-146 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING THE MASTER FEE SCHEDULE TO ESTABLISH AN ELECTRIC VEHICLE CHARGING FEE. WHEREAS, the City Council of the City of Carlsbad, California has the authority to establish fees for City services; and WHEREAS, from time-to-time said fees are reviewed and evaluated to maintain an adequate fee structure recovering costs for City services; and WHEREAS, the City Council has determined that collecting an Electric Vehicle Charging Fee of $0.35 per kilowatt-hour ($0.35lkWh) would not exceed the cost of providing electric vehicle charging services; and WHEREAS, the Electric Vehicle Charging Fee is comprised of the following five components: 1. Cost of Electricity; 2. Cost of Network Services; 3. Cost of Warranty; 4. 50 percent of Capital Cost Recovery; and 5. Payment Processing Fee; and WHEREAS, the City Council has held a public hearing and allowed for public comment on the establishment of said fee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: II II II 1. That the above recitations are true and correct. 2. That the Master Fee Schedule is hereby amended to establish an Electric Vehicle Charging Fee in the amount of $0.35 per kilowatt-hour as shown in Attachment A. 3. That this fee shall become effective on September 1, 2017. 4. That the Electric Vehicle Charging Fee may be adjusted annually as part of the Master Fee Schedule update, with the amount of the adjustment based on changes in one or more of the components of the Electrical Vehicle Charging Fee (Cost of Electricity, Cost of Network Services, Cost of Warranty, 50 percent of Capital Cost Recovery, and Payment Processing Fee). PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 25th day of :!!!Jy, 2017, by the following vote, to wit: AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. NOES: None. ABSENT: None. (SEAL) Category Misc. Fees Fee Description City of Carlsbad Master Fee Schedule Section 1. General City Service Fees 2017-18 Electric Vehicle Charging Fee Attachment A 16-17 Fee 17-18 Fee $0 $0.35/kWh Page 146 Jason Haber July 25, 2017 Electric Vehicle Charging Fee Overview •Hearing/Resolution -Amend Master Fee Schedule •$0.35/kWh Electric Vehicle Charging Fee •For Public Use of City-Owned Stations •Policy Guidance / Expert Recommendations •Fee Components EV Charging at Alga Norte ChargePoint Dashboard Messages Station Status 0 Real Time Power 0 1~-·I ~ • lnUH I An <!t'.Jle • NOIH.Oa(ly • Wakl'll1~I 6.00 kW • N•l9CIS ""ontl(G 0 660kW Station Usage C 'f' 1J.I I 10 Unique Drivers .... 50 II ... ChargePoint Dashboard Sessions (D 200 II I 100 0 Feb .... , ~ Moy Jun " Environment 0 I '1TII Hofo's hOW EV cnarv"'O nas r>olpod Ycu~, lh 1fd 12,715 kg ff ,., ,s.f ' Average Session Length a<.I I l'f 2h4m 1 h 39m Charging Energy mMWh 1 5 Ill 10 05 0 0 Oh 25m Idle 0 II Financials $306 Yot.l'..,e di1ponsed 1.46 MWh of elecmcuy over the la,t 30 days Recoup your costs by charging a fH Charg{,Po1n1 will send you tho money Eshmatad monthly cosl based on elatlncty pnu ot S0.21 ... per kWh Policy Guidance •General Plan Sustainability Element •General Plan Mobility Element •CAP -increase Zero-Emissions VMT from 15% to 25% of total by 2035 •Environmental Guiding Principles •Sustainability Guiding Principles Expert Recommendations •Center for Sustainable Energy & Plug-In SD –Low enough to encourage frequent use –Fully cover operational costs –At least partial capital cost recovery –Flexibility in pricing to match demand Fee Components •Cost of Energy -$0.21/kWh •Warranty & Network Svcs. -$0.061/kWh •50% Capital Cost Recovery -$0.044/kWh •Payment Processing Fee -$0.035/kWh Total $0.35/kWh EV Charging -Next Steps •Notify Public / EV Charging Station Users •Activate ChargePoint Payment Processing –Reimbursement to the General Fund •EVGO Contract –Underground Infrastructure Installations –Oak Street & Stagecoach Park Parking Lot Stations Staff Recommendation –Conduct a public hearing and adopt a resolution amending the Master Fee Schedule to establish an Electric Vehicle Charging Fee for public use of city-owned electric vehicle charging stations. July 25, 2017 Electric Vehicle Charging Fee