DATE: November 20, 2023
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
FROM: Andrew Brozyna, Public Works Director
Kurt Zander, Buildings and Vehicles Maintenance Manager DEPARTMENT: Public Works
SUBJECT: AGREEMENT WITH PENINSULA CLEAN ENERGY TO
PARTICIPATE IN PUBLIC EV FLEETS PROGRAM
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving an agreement with Peninsula Clean Energy to participate in their Public EV Fleets Program “(Gov EV”), authorize the City Manager to execute the Agreement and find approval of the Agreement exempt from the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines section 15061(b)(3)).
EXECUTIVE SUMMARY
Staff recommends that the City Council approve entering into an agreement with Peninsula Clean Energy’s (PCE) Gov EV program, which is designed to provide expert assistance to local governments to plan for and implement charging infrastructure and electric vehicle (EV) purchases. The Gov EV program provides free technical assistance, project planning, and grant funding to public agencies for new municipal EVs and fleets charging infrastructure.
There is no cost for the planning program, but public agencies entering into the agreement must commit to replace at least five (5) standard fossil-fuel vehicles with EV options or install at least five (5) municipal EV chargers within twelve months and agree to share ongoing charging data with PCE. If approved by the City Council, staff would
include projects identified through the process in the City’s 5-year and 15-year Capital Improvement Program budget starting in Fiscal Year 2024-2025.
BACKGROUND
Foster City’s fleet has included hybrid and all-electric sedans (pool cars) since 2008, and all vehicles are evaluated for feasibility of fuel alternatives at the time they are due for replacement. The City Council has expressed increasing interest in recent years in investing in electric and zero emission vehicles.
In the meantime, more and more EV options are becoming available and the California Air Resources Board has approved the new Advanced Clean Fleets (ACF) regulation, which is one part of a broader strategy to deploy medium- and heavy-duty zero-emission vehicles (ZEV) everywhere feasible. Under the regulations, the City’s fleet is required to ensure 50 percent of medium- and heavy-duty vehicle purchases are zero-emission beginning in 2024 and 100 percent of medium- and heavy-duty vehicle purchases are zero-emission by 2027. There are exceptions for certain types of vehicles and if no EV options are available for the type of vehicle needed.
ANALYSIS
Given the increasing focus on, interest in, and regulation of public EV fleets, PCE has created a program to assist local governments in their service territory to plan for and implement charging infrastructure and vehicle replacement plans to implement EV options where feasible in their fleets. The Public EV Fleets program provides free technical assistance, project planning, and funding to public agencies for new EVs and fleets charging infrastructure.
Public EV Fleet planning requires significant expertise, which makes the Gov EV program an invaluable resource. The program provides comprehensive planning for fleet replacements and EV charging infrastructure planning at no cost to the City, and then advises on outside funding available for implementation (construction and purchase) and provides gap funding up to $25,000 if projects are not fully covered by other grant programs.
Specifically, the program provides the following no-cost services to guide the fleet transition to EVs and EV charging infrastructure:
1. EV Fleet Replacement Plan: Identification of equivalent EVs capable of serving the needs of the City based upon the City’s anticipated replacement schedule as well as the total cost of ownership and potential related savings.
2. Fleet EV Charging Needs Assessment: Evaluation of the number and location of needed chargers for the future case when all vehicles are electric, including “make ready” projects in order to achieve the City’s replacement plan goals.
3. EV Charging Installation Plans: Identification of how EV chargers can be installed at the various facilities, including designs that can be used to solicit bids for construction.
4. Permit-ready plans: For EV charging infrastructure installation (if needed).
5. Funding Identification: Review and recommendation of funding sources (rebates and grants) available for the purchase of EV charging infrastructure and EVs from a wide variety of sources.
6. Energy Optimization Plan: Evaluation of methods and means for reducing the cost of vehicle charging based on times and types of charging – “managed charging” that will maximize savings.
7. Energy Management Services (optional): Systems that manage charging can balance load needs as well as schedule charging for the lowest time of use rates.
The program includes one free year of managed charging services.
CEQA
The approval of this Agreement with PCE is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.) as this “project” is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
Additionally, when the project for installation of the charging stations is considered, the installation EV chargers at an existing parking lot would be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301, Class 1 (Existing Facilities) and Section 15303, Class 3 (New Construction or Conversion of Small Structures).
FISCAL IMPACT
There is no cost to enter into the agreement and complete the planning process with PCE. However, the Agreement with PCE, if approved, would require the City to commit to a project scope that plans to replace a minimum of five (5) fossil-fuel vehicles with EVs and/or install a minimum of five (5) EV charging ports within twelve months from the initial kick off meeting with PCE and the City.
Once started, the planning process is anticipated to require approximately six to twelve months to complete. This is a limited time (three year) program that is currently scheduled to sunset in 2025. The total cost of the project will depend upon a number of factors such as the type of chargers or vehicles that are required, and what site preparations would need to be completed for EV charger installations.
The program provides long-term planning windows of 2025, 2030 and 2035. If approved by the City Council, staff would include projects identified through the process in the City’s 5-year and 15-year Capital Improvement Program budget starting in Fiscal Year 2024- 2025. Once the planning process is completed, City staff would provide the City Council with a project plan based on the results and final information on costs and locations, through the Capital Improvement Program budget and/or in compliance with the City’s purchasing requirements for City Council approval of proposed bidding and/or purchasing approvals.
Also, as part of the planning process, the Gov EV program would identify available outside funding sources, of which there are many, and would also provide up to $25,000 in gap funding if outside grants do not cover the full cost of the project. The proposed Agreement also provides that the City cannot receive double funding if the City is receiving other funding from PCE, including, but not limited to the EV Ready Program, for the same project locations. The proposed Agreement also contains general terms and conditions including a release of claims and hold harmless of PCE and its contractors.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
Smart Planning, Development and the Local Economy
Innovation and Sustainability
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Agreement