ELECTRIC VEHICLE
FAST CHARGING HUB
FEASIBILITY ANALYSIS
City Council
November 15, 2022
Lori Mitchell, Director
Kate Ziemba, Senior Environmental Program Manager
COUNCIL DIRECTION
• On April 26, 2022, Council adopted memo from Mayor Liccardo, Councilmember Jimenez, and Councilmember Peralez that directed staff to return with a feasibility analysis of deploying pilot public fast-charging hubs for EVs in Fiscal Year (FY) 2022-23 located at City-owned parking lots, wherein SJCE will control variable retail pricing to encourage mid-day charging
• Recommendation: Authorize City Manager or her designee to negotiate and execute tolling agreement(s) with vendor(s) to deploy 1-3 fast charging hubs at City-owned and/or privately-owned sites in low-income and disadvantaged communities in FY 2023- 24 or FY 2024-25
1 LEADER IN ELECTRIC VEHICLE (EV) ADOPTION
2 • In August, California
Air Resources Board
mandated 100% of
cars and light truck
sales to be electric
by 2035
Chart includes battery electric and plug-in hybrid
DECREASING EV COSTS
• Manufacturers now introducing new EVs priced under $30,000 • Used EV market expected to grow in 2023-2024 and prices to return to normal in early 2023
• Inflation Reduction Act: $4,000 tax credit for used EVs for income-qualified filers
• Stackable incentives plus lower fuel and maintenance costs can make EVs more affordable than gas cars for low-income
households
• Charging off-peak is like paying $2/gallon at the pump 3 STACKABLE INCENTIVES
4 Low-income Stackable
Incentives
Amount
Federal: Used EV tax credit Up to $4,000
Local: Clean Cars 4 All Up to $9,500
Total used Nissan Leaf* $1,500
Low-income Stackable
Incentives
Amount
Federal: New EV tax credit Up to $7,500
State: Clean Vehicle Rebate
Program
Up to $4,500
Local: Clean Cars 4 All Up to $9,500
Total new, base model Chevy
Bolt*
$5,100
New EV
Used EV
*Before taxes, fees, and registration
MORE EVS = INCREASED ELECTRICITY DEMAND
5 Shifting EV charging from evening & overnight to the middle of the day • Reduces carbon emissions
• Reduces the cost of electricity
California Independent System Operator Average Hourly Power Production by Resource Type – 2020
EQUITY CONCERNS
• More private
investment in charging
infrastructure in areas
with high EV adoption
• Low-income and
communities of color
are more likely to be
charging "deserts"
6 Data sources: US DOE, San José Equity Atlas
RECOMMENDATION: FAST CHARGING HUBS
PILOT PROGRAM
• Pay-for-performance tolling agreement with
vendor(s) to deploy one to three hubs in low-
income and disadvantaged communities
• Each hub would accommodate 10 EVs
• Operational for 10 years
• Sited at private and/or City-owned sites
• If approved, estimated completion in late 2023
• Goals
• Provide affordable and reliable charging to neighboring communities
• Same price or lower than off-peak home charging
• Increase midday charging
• Learning opportunity 7
SJCE
• Pays monthly payment
• Provides energy for chargers
• Sets retail rates
• Examples: unlimited charging
subscriptions, discounts for low-income
customers
• Collects customer payments for charger
usage
Vendor(s)
• Own the fast-charging infrastructure
• Responsible for siting, financing, design,
engineering, procurement, permitting,
construction, installation, interconnection,
operation, maintenance, the load
management system, and back-office
services (e.g., communications, user
account management, billing, reporting,
and utility interface applications)
TOLLING AGREEMENT
8 HUB FINANCIALS
• Estimated net loss of $1.0M to $1.5M per hub over 10-year contract term • Depends on utilization and grant funding
• Estimated annual tolling payment of $245,000 per hub projected to begin in late 2023 or early 2024 after SJCE reserves are mostly funded
9 Scenarios Utilization
Start
Utilization
End
Utilization
Growth
Grant
Funding
10 Year
Revenue 10 Year Cost 10 Year Net
Loss*
1 1% 2% 9% $0 $1,004,000 $2,454,000 ($1,450,000)
2 1% 4% 14% $0 $1,208,000 $2,578,000 ($1,370,000)
3 1% 4% 14% $400,000 $1,208,000 $2,178,000 ($970,000)
4 5% 19% 14% $400,000 $3,873,000 $3,862,000 $11,000
Year Estimated annual
fixed tolling costs
1: Late 2023 $245,400
2: 2024 $245,400
3: 2025 $245,400
4: 2026 $245,400
5: 2027 $245,400
6: 2028 $245,400
7: 2029 $245,400
8: 2030 $245,400
9: 2031 $245,400
10: 2032 $245,400
• Monthly tolling payments would
begin upon commercial operation
in late 2023 or early 2024, after
SJCE's reserves are mostly funded
ANNUAL COSTS
10 SELECTION PROCESS FOR CITY-OWNED SITES
Community Energy
staff evaluate bids
from Sept. 2022
Request for Offers
and make
recommendations
based on price,
vendor experience,
and site location.
Preference for sites
in low-income and
communities of color
and charging
deserts.
Community Energy
staff refer vendor(s)
with winning bid(s) to
the Department that
administers the site
for final site
selection.
The winning
bidder(s) in the pilot
will not receive any
advantage in the
City’s selection of a
vendor to use a City-
owned site.
The Department that
administers the site
and staff from the
City Attorney’s
Office, Finance, and
Real Estate will
perform a legal site
review to
understand permitted
site uses.
11 COMMUNITY OUTREACH
• Once site is cleared for use: CED staff
inform surrounding neighborhoods of
proposed hubs
• Once hubs are operational: CED hires
community-based organizations to conduct
in depth multilingual education and
outreach campaign
• Ride & drives, workshops, one on one
assistance navigating rebates and incentives
12 QUESTIONS?
• Recommendation
• Authorize City Manager or her
designee to negotiate and
execute tolling agreement(s)
with vendor(s) to deploy 1-3
fast charging hubs at City-
owned and/or privately-owned
sites in low-income and
disadvantaged communities in
FY 2023-24 or FY 2024-25
• Staff
• Lori Mitchell, Director
• Ross da Silva, Program Manager
• Kate Ziemba, Senior
Environmental Program Manager
13