1 STAFF REPORT
DATE: May 21, 2024
TO: Jus
tin Hess, City Manager
FRO
M: Joseph Lillio, Interim General Manager, Burbank Water and Power VIA: Drew Johnstone, Sustainability Officer
BY: Andres Azarian, Senior Administrative Analyst
SUBJE
CT: Approval of the Proposed Updates to the Burbank Water and Power Commercial Electric Vehicle Charging Station Rebate Program RECOM
MENDATION
Approve the following modifications to the Burbank Water and Power (BWP) Commercial Electric Vehicle Charging Station Rebate Program:
1. Incr
ease equipment and installation rebate amount s for Direct Current (DC) fast chargers from $4,000 to up to $10,000 per port in publicly accessible locations , multi-family residences, and environmentally disadvantaged communities. For all other locations, increase the DC fast charger equipment and installation rebate from $1,800 to $5,000.
2. Incr
ease utility infrastructure upgrade rebate amount s for DC fast chargers from $3,500 to up to $10,000 per port in publicly accessible locations , multi-family residences, and environmentally disadvantaged communities from $ 1,700 to $5,000 in all other locations.
3. Add a
rebate of up to $3,500 per device for smart outlets at multi-family properties, municipal properties, and commercial properties with employee parking.
4. Impl
ement a rebate cap of $200,000 per customer.
BACKGROUND
In 2011, as part of Assembly Bill 32, the Global Warming Solutions Act, the California Air Resources Board (CARB) established the Low Carbon Fuel Standard (LCFS) program.
The LCFS program was established to accelerate transportation electrification in the state of California. This program issues credits to utilities , which are monetized through sales to higher carbon- intensity fuel providers. LCFS credits are primarily accrued through Electrical Vehicle (EV) registrations in BWP's service territory and through the electricity dispensed by BWP EV chargers.
WATER AND
POWER
2 BWP uses revenues from selling LCFS credits to fund BWP’s residential EV charger rebates, used EV rebates, and the Commercial EV Charging Station Rebate Program. As of March 2024, BWP has a cash balance of $3.07 million from LCFS credit sales. Use of these funds is restricted and can only be spent on transportation electrification activities.
In 2013, Council adopted the Burbank 2035 General Plan and the Greenhouse Gas Reduction Plan (GGRP), both of which identified transportation as a major contributor to greenhouse gas (GHG) emissions in Burbank. The GGRP was updated in 2023 and includes the implementation of BWP’s Transportation Electrification (TE) Plan to facilitate the installation of 1,950 charge ports by 2030 through customer rebates and direct installation of charging stations. To date, BWP has facilitated 454 charge ports, 247 residential and 207 commercial.
Since 2015, the Commercial EV Charging Station Rebate Program has provided rebates for EV charging station installations at commercial and multi -family properties. The program was updated in 2021 to offer rebates of $1,800 – $4,000 for each installed charging port and an additional $1,700 – $3,500 per port to cover utility infrastructure upgrades. BWP commercial customers utilized 49% of the BWP rebate program budget in Fiscal Year (FY) 2022/2023, and to date, in FY 20 23/2024, 21% of the rebate budget has been utilized. To date, BWP has incentivized the installation of 2 07 EV chargers at commercial and multi-family properties in Burbank.
The rebates below for Level 2 and Level 1 chargers will remain in the program and not be impacted by the proposed updates. They are shared below for reference.
Current Equipment and Installation Rebates
Charging Station Type Rebate per Port
Level 2 chargers in publicly accessible
locations, multi-family residences, and
environmentally disadvantaged
communities
$4,000
Level 2 chargers in all other locations $1,800
Level 1 chargers in multi-family buildings $3,500
Current Utility Infrastructure Upgrade Rebates
Charging Station Type Rebate per Port
Level 2 chargers in publicly accessible
locations, multi-family residences, and
environmentally disadvantaged
communities
$3,500
Level 2 chargers in all other locations $1,700
3 DISCUSSION
DC fast chargers play an essential role in transportation electrification as they provide close to a full charge for most EVs in less than one hour. There are currently 71 public DC fast chargers at eight locations throughout Burbank, and staff estimate that within the next five years, at least 20 new DC fast chargers will be optimal to supply the increased demand. Despite the growing need, fast charger deployment throughout the City is below the desired pace of progress.
High complexity and costs are likely the largest driving factors behind the lack of deployment. Staff analyzed data from BWP’s recently completed DC fast charger project at the BWP customer parking lot, the California Energy Commission’s CaleVIP incentives, and studies performed by the International Council on Clean Transportation (ICCT), National Renewable Energy Laboratory (NREL), and the Rocky Mountain Institute (RMI).
The analysis shows an average cost of $82,554 for the equipment and installation of a 50 kW DC fast charger . DC fast charger installations are also likely to require BWP distribution infrastructure upgrades and be subject to BWP electric capacity charges.
Capacity charges vary depending on the extent of the upgrades and the additional electrical capacity that is added.
As an example, a project for one 50 kW fast charger with minor infrastructure upgrades and a new 200A, 480V electric service would incur approximately $75,000 in infrastructure upgrade costs, $54,056 in capacity charges, plus the $82,554 for equipment and labor for a total of $221,610. It is common for DC fast charger developers to install multiple chargers, requiring an investment of up to a million dollars or more.
The Commercial EV Charging Station program currently provides the same incentive per port for DC fast chargers and Level 2 chargers, despite DC fast chargers having much higher equipment and installation costs. Data from CaleVI P incentives shows that a 50 kW DC fast charger is approximately ten times as expensive to deploy than a 7 kW Level 2 charger. Based on the average costs described in the previous paragraph, the current rebate covers between 3% and 5% of total deployment costs for a 50 kW DC fast charger.
Staff proposes to update the rebates for DC fast chargers as shown below:
Equipment and Installation Rebates
Current
Rebate
Proposed
Rebate
DC fast chargers in publicly accessible locations, multi- family residences, and environmentally disadvantaged
communities
$4,000 $10,000
DC fast chargers in all other locations $1,800 $5,000
4 Utility Infrastructure Upgrade Rebates
Current
Rebate
Proposed
Rebate
DC fast chargers in publicly accessible locations, multi- family residences, and environmentally disadvantaged
communities
$3,500 $10,000
All other locations $1,700 $5,000
Based on average equipment and labor costs of $82,555, infrastructure upgrade costs of $75,000, and capacity charges of $54,0 56, the proposed rebate would cover approximately 9% to 15% of total DC fast charger deployment costs . As previously mentioned, current rebates cover approximately 3% to 5% of total deployment costs.
To prevent one customer from utilizing an inordinate portion of funds, staff propose to implement a rebate cap of $200,000 per customer for all commercial EV program rebates.
The current program does have a charger cap of 40 chargers , but does not have a cap on the dollar amount. The proposed cap would continue to allow a larger number of rebates for Level 1 and Level 2 chargers while limiting the number of DC fast charger rebates.
The following are the minimum and maximum number of ports that can be rebated for a single customer with the proposed cap.
Current Rebate Proposed Cap
Minimum Ports - 10
Maximum ports 40 40
With a budget of $800,00 0 for FY 2024/2025, this cap would allow for the following minimum and maximum number of ports (including DC fast chargers and Level 2 ports) to be incentivized in the community:
Current Rebate Proposed Cap
Minimum Ports 106 40
Maximum ports 444 444
The intent of the proposed rebate and cap is to provide a rebate that offsets a higher percentage of the total deployment cost s, stimulating development, while also ensuring that the program budget benefits multiple customers.
In other public utilities, equipment and installation rebates range from $6,000 to $75,000 per DC fast charger. Aside from BWP, Anaheim Public Utilities (APU) is the only public utility in California that offers rebates for utility infrastructure upgrades. APU rebates range 5 from $45,000 to $95,000 per site and are only available for EV chargers used for fleets or municipal facilities.
Staff also proposes to include smart outlets as a qualifying product for rebates at multi- family properties with three or more units , municipal properties, and commercial properties with employee parking. Smart outlets work like standard 120V or 240V outlets but only allow certain types of equipment to be energized when plugged in. Each smart outlet device may have one or more outlets. To ensure that smart outlets rebated are used for charging EVs only, staff propose that all smart outlets meet UL 2594 standards for Electric Vehicle Supply Equipment.
The multi -family sector is heavily underserved with EV charging infrastructure, and electrifying this sector will be a key factor in increasing EV adoption among environmentally disadvantaged communities and low -income customers . Municipal facilities and commercial properties with employee parking also present a good opportunity for smart outlets as they can take advantage of daytime EV charging wh en there is usually a surplus of renewable energy and costs tend to be low.
Smart outlets can typically be deployed more easil y and at a lower cost than charging stations. Smart outlets that use 120V power can also be deployed in greater numbers without an increase in electrical demand or the need for a larger electrical panel. This makes them a compelling option for multi -family buildings , municipal facilities , and commercial properties with employee parking where drivers can leave their vehicles charging for extended periods . Studies have shown that most drivers leave their cars parked for at least 12 hours a day when at home, and do not drive more than about 40 miles daily on average. Parking for long durations at night and the typical daytime driving distance means that plugging into a standard wall outlet can easily keep batteries topped off. Below is the proposed rebate for smart outlets:
Current
Rebate
Proposed Rebate
per Device
Smart outlets at multi-family properties (with 3 or
more units) and workplace parking N/A $3,500
No other public utilities offer smart outlet rebates in California, making BWP a leader in this sector . Peninsula Clean Energy, a community choice aggregator in San Mateo County, offers rebates of $2,000 to $2,500 for charging outlets but does not require outlets to be “smart .” Despite limited rebates offered by other utilities and organizations, staff believes it is vital to support electrification in the multi-family sector, which warrants BWP taking the lead and offering these rebates.
COMMUNITY OUTREACH
These proposed modifications were presented to the BWP Board on May 9, 2024. The board unanimously recommends that Council approve the proposed modifications.
BWP will promote the program inter-departmentally and educate all City fleet managers about the updated incentives. BWP’s Key Account Manager will spearhead and promote 6 the program to multi-family housing providers, the Chamber of Commerce, third-party EV charging companies, auto dealerships, and the broader business community.
Smart outlet manufacturers have approached BWP staff about smart outlet rebates in Burbank. After the Commercial EV Charging Station Rebate program updates are approved, staff will contact and inform these manufacturers so they can begin promoting the program to their customers.
BWP will leverage its social media channels and include an article about the program in its Currents newsletter.
ENVIRONMENTAL REVIEW
Modification of this program is not a project under the California Environmental Quality Act (CEQA). The creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment are not projects under CEQA (14 CCR § 15378(b)(4)). This activity involves increasing funding to an already existing program for EV chargers. As a result, no further environmental review is necessary. The installation of any EV charging stations associated with any rebates could constitute, depending on the nature and scope of such installation: minor alterations of an existing facility CEQA (14 CCR § 15301), new construction of a small structure (CEQA (14 CCR § 15303) and/or minor alterations to land (CEQA (14 CCR §15304). In addition, given the size of the rebate program and the potential reduction in vehicle emissions, this activity should be covered by the “common sense” exemption CEQA (14 CCR § 15061(b)(3)) since this there is no possibility that the activity in question may have a significant negative effect on the environment. As a result, the activity should not be subject to CEQA.
FISCAL IMPACT
BWP does not use local taxes or revenue from electric sales to fund electric vehicle rebates or to install BWP EV charging infrastructure. The Commercial EV Charging Station Rebate program is funded through the sales of Low Carbon Fuel Standards (LCFS) credits that BWP receives for electricity that is provided to charge residential EVs.
Funds from the sale of LCFS credits can only be used for transportation electrification activities. BWP has $522,900 remaining in its EV Rebate program budget for FY 2023/2024 and has $965,000 budgeted for FY 2024/2025, which includes commercial and residential EV charger rebates, and used EV rebates. Although no budget changes are requested, the higher rebate amounts and additional product offerings make it more likely for funds to be expended quickly.
Staff anticipates approximately $64,350 in electric revenue per year for each DC fast charger installed, based on aggregated usage data of all DC fast chargers currently in Burbank.
CONCLUSION
Through these proposed changes, BWP staff aim to update the Commercial EV Charging Station Rebate Program to offer more compelling rebates for DC fast chargers and promote smart outlet installations at multi -family buildings , municipal properties , and 7 commercial properties with employee parking. BWP is committed to electrifying the transportation sector and helping Bur bank meet state and local electrification goals , including goals set in the City of Burbank Greenhouse Gas Reduction Plan. To keep the program in line with current needs and trends, staff request that Council approve to:
1. Increase equipment and installation rebate amounts for Direct Current (DC) fast chargers from $4,000 to up to $10,000 per port in publicly accessible locations , multi-family residences, and environmentally disadvantaged communities. For all other locations, increase the DC fast charger equipment and installation rebate from $1,800 to $5,000.
2. Increase utility infrastructure upgrade rebate amounts for DC fast chargers from $3,500 to up to $10,000 per port in publicly accessible locations , multi-family residences, and environmentally disadvantaged communities from $1,700 to $10,000 in all other locations.
3. Add a rebate of up to $3,500 per device for smart outlets at multi-family properties, municipal properties, and commercial properties with employee parking.
4. Implement a rebate cap of $200,000 per customer.
ATTACHMENTS
Attachment 1 – Commercial EV Charging Station Rebate Program Application