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Staff Report - 2022 Community Air Quality Grant for Electric Vehicle Charging Infrastructure

Sacramento City Council
December 13, 2022

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Staff Report - 2022 Community Air Quality Grant for Electric Vehicle Charging Infrastructure
Meeting
December 13, 2022
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Sacramento City Council
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6
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Text extracted from the city's file for reading and search. Open the original on sacramento.granicus.com. That file is the official record.

City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02050 12/13/2022 Consent Item 20.
2022 Community Air Quality Grant for Electric Vehicle Charging Infrastructure File ID: 2022-02050
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) submit grant applications for the following projects for the 2022 Community Air Quality Grant Solicitation: a) Electric Vehicle Charging Infrastructure -South Area Corporation Yard (SACY); b) Electric Vehicle Charging Infrastructure- North Area Corporation Yard (NACY); and c) Electric Vehicle Charging Infrastructure- Public Safety Administration Building (PSAB); 2) submit any related documents necessary to support the grant applications; and 3) execute the grant agreements and any related grant documents upon award.

Contact: Elizabeth Weeks, Senior Engineer, (916) 808-2330, [email protected]; Mark Brown, Supervising Engineer, (916) 808-7118, [email protected]; James Christensen, Facilities Manager, (916) 808-5863, [email protected]; Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Background
3-Resolution
Additional Description/Analysis
Issue Detail: The Sacramento Metropolitan Air Quality Management District (SMAQMD) has over $22 million in incentive funding to improve air quality and promote cleaner transportation technology in Sacramento. Funding is available to install low-carbon infrastructure, including electric vehicle supply equipment (EVSE). The SMAQMD will use an open solicitation application process to select projects for funding. Applications will be accepted and reviewed continuously starting November 1, 2022. The solicitation will close upon award of all available funding.

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File ID: 2022-02050 12/13/2022 Consent Item 20.

To be eligible for infrastructure incentives, an applicant must own the equipment that is installed at a physical location within Sacramento County. Priority will be given to projects located in Disadvantaged Communities (DAC) and AB 1390 designated areas. Applications that promote zero- emission technology and provide swift emission reductions to the community will also be prioritized.

Incentive requests for over one million dollars will require SMAQMD Board approval.

City staff evaluated potential electric vehicle charging infrastructure projects that are currently being designed to support the five-year electrification plans for the City fleet, including Electric Vehicle Supply Equipment Project (C15001600) and Fleet Alternative Fuel Equipment Replacement (D13000200), and selected project locations that best met the goals and purpose of this grant program. Based upon the stated goals, community benefits, and current zero-emission vehicles (ZEVs) on order for the City fleet, City staff recommend submitting the following three projects for grant funding. The projects (and grant amounts) are listed in order of priority.

Potential Potential
Grant City Match

1. Electric Vehicle Charging Infrastructure $1,100,000 $1,100,000 South Area Corporation Yard (12 dual chargers and
2 DC Fast Chargers)

2. Electric Vehicle Charging Infrastructure $125,000 $125,000 North Area Corporation Yard (4 dual chargers)

3. Electric Vehicle Charging Infrastructure $175,000 $125,000 Public Safety Administration Building (10 dual
chargers)
_________________________________________________________________________ Total for 26 dual chargers and 2 DC Fast Chargers $1,400,000 $1,400,000 Policy Considerations: This grant would provide funding to install EVSE to support the City’s Fleet Sustainability Policy (Resolution No. 2017-0478). The improvements funded with the grant would support the City’s commitment to be carbon neutral by 2045.

Economic Impacts: None.

Environmental Considerations:

California Environmental Quality Act (CEQA): Under the California Environmental Quality Act (CEQA) guidelines, continuing administrative activities such as grant applications do not constitute a project and are therefore exempt from review. Any projects that are awarded grant funding will undergo necessary environmental review following the acceptance of funding.

Sustainability: The transportation sector accounts for approximately 57% of community-wide greenhouse gas emissions, the largest single sector in the community. Electrification of the

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File ID: 2022-02050 12/13/2022 Consent Item 20.
transportation sector leads to reductions in petroleum use, both reducing greenhouse gas emissions and improving local air quality. The City has committed to carbon neutrality by 2045 as a core principle of the 2040 General Plan. To reach this target, the City must begin making the investment now, otherwise the Fleet Division will be investing in vehicles and other assets that may require replacement prior to the end of their useful economic life to meet the carbon neutrality goal.

The Fleet Sustainability Policy was approved by the City Council with Resolution No. 2017- 0478 and directs City Fleet staff to prioritize the procurement of ZEVs for vehicle replacements when a suitable ZEV option is identified with equivalent operational capacity. As part of the policy, the City’s minimum commitment of “annual purchases of Fleet replacements is 50% for alternative fuel and/or alternatively powered vehicle replacements by 2018, and 75% by 2025 to reduce emissions and fossil fuel consumption, inclusive of ZEVs.” The Policy also committed the City to “expanding alternative fuel and ZEV infrastructure availability to facilitate expansion of increased numbers of alternative fuel vehicles.” The 26 dual chargers proposed to be installed with this grant will provide 52 handles for ZEV charging. Preliminary project plans include the assumption that each handle can serve two ZEVs on a rotating schedule. The delivery of the three projects can serve an additional 104 vehicles or roughly 6% of the City’s Light Duty Fleet. This expansion would double the City’s ZEV fleet.

Commission/Committee Action: Not applicable.

Rationale for Recommendation: Pursuing this grant funding will support the City’s Fleet Sustainability Policy by providing funding for the infrastructure required to support additional ZEVs purchased by Fleet in response to the City Council approved policy. With adoption of the Fleet Sustainability Policy, the City Council committed to procurement of electric vehicles. Charging infrastructure is needed to support the vehicles being procured.

Financial Considerations: A total of $22 million in one-time grant funds is available through the 2022 Community Air Quality Grant Solicitation. The grant will reimburse the City up to 50% of eligible project costs for non-public facing charging infrastructure. The three recommended projects provide for a total investment of approximately $2.8 million, with approximately $1.4 million in grant funding and a City contribution of $1.4 million in matching funds. If all three projects are approved for grant funding, the City contribution in matching funds would be required before Fiscal Year (FY) 2023/2024.

The Electric Vehicle Supply Equipment Project (C15001600) currently has an unobligated balance of $456,000, however this budget is reserved for the ongoing design of up to 17 EVSE projects Citywide. The Fleet Alternative Fuel Equipment Replacement (D13000200) project currently has an unobligated balance of $55,000, however this budget is intended to provide staff support through the

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File ID: 2022-02050 12/13/2022 Consent Item 20.
final design phase of the project.

If grant funding is awarded, Staff will return to City Council to establish the project budgets and to request funding for required match if it has not been approved through the budget process. If local funding is not available, the City would not be able to accept the grant.

Local Business Enterprise (LBE): Not applicable.

Background: The Fleet Sustainability Policy was approved by the City Council with Resolution No. 2017-0478 and directs City Fleet staff to prioritize the procurement of Zero Emission Vehicles (ZEVs) for vehicle replacements when a suitable ZEV option is identified with equivalent operational capacity. The Policy also committed the City to “expanding alternative fuel and ZEV infrastructure availability to facilitate expansion of increased numbers of alternative fuel vehicles.” On February 15, 2022, the Sacramento City Council adopted a resolution approving the Fiscal Year (FY) 2021/22 Midyear Budget Report (Resolution 2022-0062). The Electric Vehicle Supply Equipment (EVSE) Project (C15001600) was established through this process and a $625,000 budget was established for the design of EVSE improvements at up to 17 locations Citywide. Fleet has now ordered vehicles that trigger the need for additional EVSE infrastructure.

City staff have reviewed the 2022 Community Air Quality Grant Solicitation and found that the EVSE projects identified below meet the grant requirements:
· The project is situated in Sacramento County and uses commercially available technologies · Work can be performed by a licensed contractor
· The project follows all federal, state, and local air quality rules and regulations · The applicant has applied for and paid the fee for Rule 16 determination to his/her local utility provider
· Priority will be given to projects located in a disadvantaged community or an AB 1390 zone · Priority will be given to projects that are ready to implement (including approved permits and Rule 16 determination)
Full detail on the program is available on the website at:
2022 Community Air Quality Grant Solicitation <https://www.airquality.org/businesses/incentive- programs/current-grant-solicitation>
Grant application project summaries:

1. Electric Vehicle Supply Equipment Project- South Area Corporation Yard:

The first phase is estimated to cost $2.2 million - $1.1 million in grant funds and $1.1 million in City matching funds.
th

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File ID: 2022-02050 12/13/2022 Consent Item 20.

The South Area Corporation Yard (SACY), located at 5730 24th Street, is a City owned property that hosts a variety of Citywide operations, such as Street Maintenance, Transportation Signals and Lighting, Transportation Signs and Markings, Facilities, Youth, Parks, & Community Enrichment, and some Department of Utility functions. Over the next four fiscal years, approximately 100 additional Electric Vehicles are forecasted to arrive at this site as direct replacements for vehicles with internal combustion engines. The Electric Vehicle Supply Equipment (EVSE) project scope at this location ultimately includes installing 30 Level 2 dual handle chargers (60 connectors) and 2 DC Fast chargers for quick re-charges.

The first phase, which would be constructed with the grant funding, includes a new SMUD service connection and transformer, 12 double handle chargers (24 connectors) and the DC fast chargers. SACY is located within a CalEnviroScreen 4.0 low-income area and an Assembly Bill 1390 designated area.

2. Electric Vehicle Supply Equipment Project- North Area Corporation Yard:

The first phase is estimated to cost $250,000 - $125,000 in grant funds and $125,000 in City matching funds.

The North Area Corporation Yard (NACY), located at 918 Del Paso Road, is a City owned property that hosts a variety of vehicles that support Citywide operations, such as Street Maintenance, Recycling and Solid Waste, Youth, Parks, & Community Enrichment, Construction Inspection, Fleet and some Department of Utility functions. Over the next four fiscal years, approximately 30 additional Electric Vehicles are forecasted to arrive at this site as direct replacements for vehicles with internal combustion engines. The Electric Vehicle Supply Equipment (EVSE) project scope at this location ultimately includes installing 8 Level 2 dual handle chargers (16 connectors).

The first phase, which would be constructed with the grant funding, includes a new SMUD service connection and 4 double handle chargers (8 connectors). NACY is located within a CalEnviroScreen 4.0 low-income community within ½ mile of a disadvantaged community.

3. Fleet Alternative Fuel Equipment Replacement-ZEV Public Safety CALeVIP:

The total project is estimated to cost $350,000 - $175,000 in grant funds and $175,000 in City matching funds. This project will be constructed in a single phase due to the amount of Chevy Bolts already on site/on order.

The Public Safety Administration Building (PSAB), located at 5770 Freeport Boulevard, is a City owned property that hosts a variety of Public Safety operations, including Police and Fire headquarters and Fire inspections. Over the next four fiscal years, approximately 20 additional Electric Vehicles are forecasted to arrive at this site as direct replacements for

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File ID: 2022-02050 12/13/2022 Consent Item 20.
vehicles with internal combustion engines. The scope at this location includes installing 10 Level 2 dual handle chargers (20 connectors).

The project, which would be constructed with the grant funding, includes a new SMUD service connection. One accessible charging space will be open to the public, which may qualify for additional incentives under the grant.

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RESOLUTION NO. 2022-

Adopted by the Sacramento City Council

December 13, 2022

2022 Community Air Quality Grant for Electric Vehicle Charging Infrastructure

BACKGROUND

A. The Sacramento Metropolitan Air Quality Management District has issued a request for applications for the 2022 Community Air Quality Grant Solicitation.

B. The solicitation opened on November 1, 2022 and will close upon award of all grant funding.

C. The program includes incentives for Electric Vehicle Supply Equipment (EVSE), also referred to as battery electric vehicle charging stations.

D. The grant funding is intended to improve air quality and promote cleaner technologies in Sacramento.

E. Staff has reviewed the guidelines, criteria, and requirements for the grant to prepare the list recommended for the projects that meet the criteria.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The City Manager or the City Manager’s designee is authorized to submit grant applications for the 2022 Community Air Quality Grant solicitation for the following projects:
 Electric Vehicle Charging Infrastructure - South Area Corporation Yard  Electric Vehicle Charging Infrastructure - North Area Corporation Yard  Electric Vehicle Charging Infrastructure - Public Safety Administration Building

Section 2. The City Manager or the City Manager’s designee is authorized to submit any and all related documents necessary to support grant applications.

Section 3. The City Manager or the City Manager’s designee is authorized to execute grant agreements and any related grant documents upon award by the Sacramento Metropolitan Air Quality Management District.

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