1 STAFF REPORT
DAT
E: February 28, 2023
T
O: Justin Hess, City Manager
F
ROM: Dawn Roth Lindell, General Manager, Burbank Water and Power BY: Jeannine Edwards, Assistant General Manager, Sustainability, Marketing and Strategy
S
UBJECT: Update on BWP Electric Vehicle Transportation Programs RE
COMMENDATION
Note and file.
BACKG
ROUND
Burbank Water and Power (BWP) is committed to helping the community transition to electric transportation and has made significant strides to help facilitate the adoption of electric vehicles through our programs and services . In 2006, the California Legislature passed the California Global Warming Solutions Act of 2006 [Assembly Bill 32 (AB 32)], which created a comprehensive, multi-year program to reduce greenhouse gas emissions in the state.
In
the 2009 California Air Resources Board (CARB) Scoping Plan, a vision was set on how California could meet its 2020 and 2 050 greenhouse gas emissions reduction requirements1. The document identified the transportation sector, the cars and trucks that move goods and people, as the largest contributor to greenhouse gas emissions. At that time, the transportation sector accounted for 38% of California’s total greenhouse gas emissions. Fast forward 11 years and transportation still accounts for 38% of greenhouse gas emissions. While there has been a reduction in total emissions, 39 MMT CO2e2, all other sectors have also reduced at a much higher rate.
T
he CARB scoping plan has also established a framework for a Zero Emission Vehicle (ZEV) program3 which has played an important role in establishing the laws, funds, and 1 https://ww2.arb.ca.gov/sites/default/files/classic/cc/scopingplan/document/adopted_scoping_plan.pdf 2 MMT CO2e Million metric tons of carbon dioxide emissions 3 https://ww2.arb.ca.gov/our-work/programs/zero-emission-vehicle-program
WATER AND
POWER
Jeannine Edwards
2 incentives to transform vehicles away from petroleum to cleaner fuels. Part of that is CARB’s Low Carbon Fuel Standard (LCFS ) which established a program and accompanying market in 2018 to help reduce the carbon intensity of transportation fuels.
This market helps incentivize and fund the necessary changes required to transition away from emission-polluting vehicles. As part of the LCFS program, BWP earns credits via electric vehicle (EV) registrations and EV charging sales in our city. At the end of the year, BWP sells the credits into the market to fuel producers looking to offset their carbon intensity. Via this program, BWP has been able to secure between $1 – 1.7 million annually to fund community programs targeted at reducing greenhouse gas emissions from the transportation sector. Notably, 20% of these funds must be invested in Disadvantaged Communities, a term defined by SB535 to describe California communities most burdened by poverty and pollution.4
As of January 1, 2021, Burbank had 2,233 electric vehicles registered in the city. At the end of 2022, BWP estimates at least 4,000 electric vehicles registered in the city. In fiscal year 2022-2023 BWP’s electric transportation programs were budgeted at $1.4 million; this is funded via the LCFS
5 program. BWP also has $3.4 million in unspent funds.
DISCUSSION
BWP has worked to facilitate a viable community for electric vehicles, assisting the community in overcoming the obstacles that may arise during this transition.
Knowledge about electric vehicles
• BWP has an online electric vehicle buyers guide at
https://ev.burbankwaterandpower.com/. At this site community members can explore EVs, compare the cost to a similar gas vehicle, and access rebates. • Prior to the COVID-19 Pandemic (Pandemic), BWP hosted two EV Ride and Drive events, where the Burbank community was invited to view, learn about and test - drive electric vehicles without the sales pressure. BWP is exploring hosting a ride and drive event in calendar year 2023.
Incentives to reduce the cost of electric vehicle purchases • While the federal government has been active i n providing owners of brand-new electric vehicles tax credits , individuals from disadvantaged communities are typically not able to purchase a brand- new vehicle. To facilitate access, BWP decided to offer a $1,000 rebate on used electric vehicles to increase access and make sure EVs stay on the road.
4 https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/infrastructure/disadvantaged-communities 5 LCFS was created in 2011 by the California Air Resources Board (CARB) as part of several AB32 measures to reduce greenhouse gas emissions throughout the state 20% by 2030 and 80% by 2050. BWP receives a portion of Burbank’s electric vehicle registrations which funds these programs.
3 Incentives to invest in charging infrastructure
• The residential home charger rebate is up to $1,200 with an electric panel upgrade, this is increased to $1,500 if the resident is in a disadvantaged community.
• Commercial charger rebates provide up to $15,000 per charging station to offset some of the costs of purchasing and installing qualified EV charging stations, including Level 2 charging stations and DC fast chargers. Level 1 charging stations deployed in common areas of multi-family residences may also qualify for a rebate.
Residential access to lower electricity pricing via the EV Time Of Use (TOU) Rate • BWP offers a rate that incentivizes Level 2 electric vehicle charging at the optimal time for the grid , between 11 pm and 8 am. Many electric vehicles can be programmed to charge at certain times to take advantage of this pricing. Typical residential electric rates are 12 cents/kWh in tier 1 and 17 cents/kWh in tier 2. With an EV TOU rate residents can access pricing as low as 9 cents per kWh during off-peak hours. The trade-off is that at peak times, 4 to 7 pm, the costs can increase up to 26 cents/kWh.
Access to public EV charging
• BWP owns and operates 73 public EV charging ports at 17 different sites, with plans to install more throughout the city. The public charging ports average about 6,000 sessions per month and are averaging about $144 in revenue/port per month.
• The cost for charging is 18 cents/kWh for level 2 ports and 29 cents/kWh for DC fast chargers.
• The Pandemic supply chain issues have had an impact on our electric vehicle charging programs. The planned 2021/22 fiscal year installations have been delayed due to an inability to purchase the service cabinets to house the electric infrastructure at the charging port locations. These service cabinets used to have no longer than a 1-month lead time, which increased to 10+ months in 2022.
In the next five years, BWP expects continued growth within the EV market fueled by California’s goal to reach 5 million EVs by 2035 and only zero-emission electric vehicles for sale starting in 2035. Additionally, the market is showing clear signs of transformation with 112 available EV models with ranges up to 400+ miles and prices starting at $24,000 (after incentives). BWP is continuing to focus on supporting this transition while ensuring equitable access in disadvantaged communities. On the horizon, BWP is evaluating options to increase chargers near or in multi -family units and to help facilitate medium and heavy-duty EVs by providing charging station rebates.
ENVIRONMENTAL REVIEW
This activity has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, 4 and as such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
None.
CONCLUSION
BWP is still refining the plans for these programs and is looking to prudently invest what is needed to accelerate our clean- energy future. Prior to increasing rates, BWP will propose the utilization of unspent LCFS funds6 and grants to run new programs.
ATTACHMENTS
None.
6 BWP has approximately $3.5M in unspent LCFS funds.