TO: HONORABLE MAYOR FROM: Zachary Struyk
AND CITY COUNCIL
SUBJECT: See Below DATE: September 30, 2024
Approved Date
10/10/24
COUNCIL DISTRICT: Citywide
SUBJECT: Electric Vehicle Charger Assistance Pilot Program for Multifamily Housing
RECOMMENDATION
Adopt a resolution approving the establishment of the Energy Department’s Multifamily Electric Vehicle Charger Assistance Pilot from October 2024 through December 2025 with a total expected cost of approximately $300,000.
SUMMARY AND OUTCOME
Electric vehicle (EV) adoption to date has been concentrated among higher-income households that are able to charge their vehicles at home. Increasing EV charging infrastructure at multifamily properties is integral to increasing EV adoption among renters. EV ownership can save consumers thousands of dollars per year in fueling and maintenance costs compared to driving a gasoline-powered vehicle. Multifamily EV charging infrastructure incentives decrease the cost for multifamily property owners to install EV chargers at their property. Approval of the recommendation would result in the Energy Department, as administrator of San José Clean Energy (SJCE), establishing an EV charger incentive pilot program for SJCE multifamily customers for Fiscal Year 2024-2025 called the “Multifamily Electric Vehicle Charger Assistance Pilot.”
The Energy Department would implement the multifamily EV charger pilot in-house, in partnership with other EV charging infrastructure direct install programs, such as Pacific Gas and Electric Company’s (PG&E) Multifamily and Small Business Direct Install Program, to share costs and drive participation from multifamily properties in low- COUNCIL AGENDA: 10/22/24
FILE: 24-2084
ITEM: 2.10
HONORABLE MAYOR AND CITY COUNCIL
September 30, 2024
Subject: Electric Vehicle Charger Assistance Pilot Program for Multifamily Housing
income and pollution-burdened communities. Between October 2024 and December 2025, the department expects the pilot to fund EV charger installations at seven to 12 multifamily properties in San José at little to no cost to the multifamily property owner or manager. Incentives would cover the costs associated with installing Level 1 and low- power Level 2 EV charger outlets1, Level 2 charging stations2, and main panel upgrades for properties that would not be able to install EV chargers without a panel upgrade. The total expected cost for the pilot is approximately $300,000. Projected impacts are depicted in Table 1. Actual impacts will be measured throughout the program and depend on the total number EV charging ports installed and the resulting EV adoption among the residents at each property.
Table 1. Projected Pilot Impacts
Impacts Low Participation High Participation
Number of project sites 7 properties 12 properties
Number of EV charging
ports added
84 ports 144 ports
Total greenhouse gas
reductions
713 metric tons CO2e 1,223 metric tons CO2e
BACKGROUND
Emissions from transportation make up about half of San José’s total greenhouse gas emissions.
3 Electrifying transportation through the adoption of EVs, electric buses, medium- and heavy-duty vehicles, and e-bikes will be a major factor in reducing emissions. San José’s pathway to Carbon Neutrality by 2030 accelerated the City’s Climate Smart goals to transition 79-88% of passenger vehicles to electric by 2030 and to reduce commute trips taken in single-occupancy vehicles.
State rules will propel consumers towards EVs. In August 2022, the California Air Resources Board established the Advanced Clean Cars rule that will rapidly scale down the availability of new cars that run on gas, and by 2035, only zero-emission cars and light trucks will be for sale.
4 Already, zero emission vehicles, including EVs, plug-in hybrids, and fuel cell vehicles, made up 42% of new light-duty vehicle sales in the Santa Clara County in 2024 year to date.5 However, EV adoption to date has been
1 Level 1 outlets offer charging through a 120 volt alternating current circuit, providing about 50 to 60 miles of range over a 12-hour charge. This is the same as a standard electrical outlet. Low-power Level 2 outlets offer charging through a 208 to 240 volt alternating current circuit, providing about 12 to 24 miles of range per hour. EV drivers bring their own charging cord for both types of outlets. 2 Level 2 charging stations offer charging on a 208 to 240 volt alternating current circuit, providing about 20 to 40 miles of range per hour. EV drivers plug the charger’s cord into their vehicle. 3 Climate Smart San José 2021 Communitywide Greenhouse Gas Inventory 4 California Air Resources Board Press Release August 25, 2022 5 California Energy Commission Light-Duty Vehicle Population in California
HONORABLE MAYOR AND CITY COUNCIL
September 30, 2024
Subject: Electric Vehicle Charger Assistance Pilot Program for Multifamily Housing
concentrated among higher-income households that are able to charge their vehicles at home.
While high purchase prices have been a barrier to EV adoption for many, federal and state programs and market forces are making EVs more affordable and accessible for low-income consumers. However, residents living in multifamily properties face further barriers to EV adoption due to the lack of charging ports available where they live and little to no access to public charging infrastructure (Figure) The California Energy Commission found that the capital expense to install EV charging infrastructure and the electrical capacity constraints in older buildings have deterred property owners from installing EV chargers. To overcome this, the California Energy Commission recommends that local governments reduce the cost of installing EV charging infrastructure by supplying rebates.
6 Additionally, a local study found that low power
charging solutions are the lowest cost EV chargers to install, can meet the daily fueling needs of over 94% of Bay Area drivers, and are best fit for locations with longer dwell times, such as multifamily properties.7
Figure. Public EV Chargers and Percentage of Renters by Census Tract (Data Sources: City of San José Open Data Portal, American Community Survey 2022, U.S. Department of Energy)
6 California Energy Commission Report on Multi-Unit Dwelling Barrier to Plug-in Electric Vehicle Adoption 7 Peninsula Clean Energy Commute & Multifamily EV Charging Level Needs Analysis
HONORABLE MAYOR AND CITY COUNCIL
September 30, 2024
Subject: Electric Vehicle Charger Assistance Pilot Program for Multifamily Housing
ANALYSIS
The Energy Department recommends offering a multifamily EV charger incentive pilot program from October 2024 through December 2025 called the “Multifamily Electric Vehicle Charger Assistance Pilot.” Staff will develop and implement the pilot in-house open to all multifamily properties, with at least five units and the main or primary building meter being associated with a SJCE account, on a first come, first served basis. The Energy Department expects the pilot to fund EV charger installations at seven to 12 multifamily properties in San José at little to no cost to the multifamily property owner or manager. The EV charging measures to be offered through the pilot include Level 1 and low-power Level 2 EV charger outlets, Level 2 charging stations, and main panel upgrades for properties that would not be able to install EV chargers without a panel upgrade (Table 2.) The department plans to work with other EV charging infrastructure direct install programs to share costs and drive participation from multifamily property owner and manager customers in priority communities, including low-income and pollution-burdened census tracts.
8 For example, customers who stack pilot incentives
with the PG&E’s Multifamily and Small Business Direct Install Program will have a higher likelihood of their project being funded due to the per-port cost limits in PG&E’s program. Through incentive stacking, priority community customers can get total projects covered and non-priority community customers can receive up to $11,000 off the total costs to install a Level 2 charging station. Level 2 charging stations cost $10,000-$12,000 on average to install.
Table 2. SJCE Multifamily EV Charger Pilot Offerings
Offering Port Incentive* Applicable Cap
Level 1 or Level 2 outlet $2,000 Up to 100% of the project cost Level 2 charging station $5,000 Up to 100% of the project cost Main panel upgrade $5,000 Up to 100% of the project cost * Eligible costs covered through the pilot: charging equipment, installation labor costs, electrical improvements (including panel upgrade costs), infrastructure upgrade costs, operations and maintenance agreements, equipment warranties, and load management equipment.
The Energy Department will conduct outreach to multifamily property owners and managers in partnership with existing EV charging infrastructure direct install programs, including PG&E’s program. Additional marketing and outreach will be completed through engagement with multifamily housing associations and the Energy Department’s new EV webpages.9
Incentive applications will be accepted on a first come, first served basis. A waitlist will be created to manage applications received after pilot funds have been exhausted, in
8 PG&E’s Priority Communities Map
9 www.sanjosecleanenergy.org/ev/
HONORABLE MAYOR AND CITY COUNCIL
September 30, 2024
Subject: Electric Vehicle Charger Assistance Pilot Program for Multifamily Housing
the case that other approved projects are cancelled. Incentive checks will be issued to pilot participants (multifamily property owners or property managers customers) upon project completion after all project details have been reviewed and approved. If the installing contractor applies for incentive funds on behalf of the customer, the customer may authorize the incentives to be paid directly to the contractor. In this instance, the contractor will be required to provide proof that the full incentive amount has been passed through to the customer. Additionally, all incentive disbursements will be verified with the customer to ensure passthrough compliance.
Projected reductions in greenhouse gas emissions are depicted above in Table 1.
Actual reductions will be measured throughout the program and will depend on the total number of EV charging ports installed and the resulting EV adoption among the residents at each property. The Energy Department will market its EV education and future transportation electrification program offerings to tenants in multifamily properties participating in the pilot to help spur EV adoption. The Energy Department plans to apply lessons learned from the pilot as it designs future EV charging infrastructure incentive programs. Staff will encourage multifamily property owners and managers to charge fair EV charging rates to their tenants. Through this pilot, staff will explore additional measures to keep EV charging rates at multifamily properties comparable or equal to market rate.
EVALUATION AND FOLLOW-UP
Staff will report on program uptake during the Energy Department’s SJCE Programs Roadmap Update to City Council in spring 2025. Subject to the results of the pilot, staff may return to the City Council in 2025 to seek approval to expand the EV charger assistance pilot.
COST SUMMARY/IMPLICATIONS
The pilot would be funded from the San José Clean Energy Fund. The total cost for the pilot is expected to be approximately $300,000 for 2024-2025 and 2025-2026, with all of the budget allocated to customer incentives. In April 2024, the City Council approved the Energy Department’s customer programs spending plan of $12 million for Fiscal Years 2023-2024 and 2024-2025. Funding for this pilot program was not originally included in the $12 million spending plan for customer programs; however, funding is available since some of the approved programs now require less funding due to later than planned launches. Costs for customer programs are funded from ratepayer funds, which may be offset by increased electric load (revenue to SJCE), especially as impacted multifamily residents adopt EVs.
HONORABLE MAYOR AND CITY COUNCIL
September 30, 2024
Subject: Electric Vehicle Charger Assistance Pilot Program for Multifamily Housing
COORDINATION
T
his memorandum has been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, and the Department of Transportation.
PUBLIC OUTREACH
T
his memorandum will be posted on the City’s Council Agenda website for the October 22, 2024 City Council meeting.
COMMISSION RECOMMENDATION AND INPUT
N
o commission recommendation or input is associated with this action.
CEQA
Ca
tegorically Exempt, File No. ER24-249, CEQA Guidelines Section 15301, Existing Facilities. Attachment: Statement of Exemption
PUBLIC SUBSIDY REPORTING
T
his item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution. /
s/
ZACHARY STRUYK
Acting Director, Energy
F
or questions, please contact Kate Ziemba, Senior Environmental Program Manager, Energy Department, at [email protected].
A
ttachment: Statement of Exemption
200 E. Santa Clara Street, 3rd FL San José, CA 95113 tel (408) 535-3555 www.sanjoseca.gov/pbce Planning, Building and Code Enforcement
CHRISTOPHER BURTON, DIRECTOR
STATEMENT OF EXEMPTION
FILE NO. ER24-249
LOCATION OF PROPERTY Citywide
PROJECT DESCRIPTION Public exemption for actions taken by the City of San Jose related to establishment and implementation of the Energy Department’s Multifamily Vehicle Charger Assistance Pilot Program. The Program includes, but is not limited to, funding and installation of Level 1 and low-power Level 2 EV charger outlets, Level 2 charging stations, and main panel upgrades at up to 12 multifamily properties located in San Jose. This exemption does not apply to the removal of any trees.
CERTIFICATION
Under the provisions of Sections 15301 of the State Guidelines for Implementation of the California Environmental Quality Act (CEQA) as stated below, this project is found to be exempt from the environmental review requirements of Title 21 of the San José Municipal Code, implementing the California Environmental Quality Act of 1970, as amended.
15301. EXISTING FACILITIES
Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.
ANALYSIS
Background
This exemption covers establishment and implementation of the Energy Department’s Multifamily Vehicle Charger Assistance Pilot Program, including funding and installation of Level 1 and low-power Level 2 EV charger outlets, Level 2 charging stations, and main panel upgrades at up to 12 multifamily properties located in San Jose. The Pilot Program is expected to fund EV charger installations at up to 12 multifamily properties in San José that have at least five units and are served by San José Clean Energy. Charging stations, outlets, and electrical panels would be installed at existing multifamily properties in existing parking areas. Sites will be chosen on a first-come first-served basis. This exemption does not allow for expansion or change of use to the existing space or the removal of existing trees.
The Program would result in negligible or no expansion of the use beyond that existing at the time and is not anticipated to result in significant or substantial impacts to the environment. Therefore, the project qualifies for a categorical exemption under CEQA Guidelines Section 15301 - Existing Facilities.
Attachment - Statement of Exemption
ER24-249: Public Exemption for
EV Charger Incentive Program for Multifamily Housing Page 2 of 2
Exceptions:
CEQA Guidelines Section 15300.2 provides exceptions to the use of Categorical Exemptions where the use of a Categorical Exemption is prohibited under certain circumstances. The City has considered the projects applicability to all of the exceptions under Section 15300.2. An analysis of each of these exceptions in reference to this specific project is provided below.
(a) Location. Class 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located. Section 15300.2(a) started that a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Section 15300.2(a) does not apply to the Class Category 1 of exemptions.
(b) Cumulative Impact. Charging stations, outlets, and electrical panels would be installed at existing multifamily properties in existing parking areas to expand access to electrical vehicle charging infrastructure for the purpose of reducing greenhouse gas emissions. Based on the above analysis, there is no evidence of a potential significant cumulative impact on the environment from the proposed project.
(c) Significant Effect. The project would not result in any significant effects on the environment due to unusual circumstances. The proposed project site does not have any unusual circumstances that would negatively impact the environment.
(d) Scenic Highways. The project does not anticipate to result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway. If work is to be damage the scenic resources such as trees or historic buildings, rock outcropping or similar sources within a highway official designated as a state scenic highway, this exemption cannot be used.
(e) Hazardous Waste Sites. No work will occur in areas included on any list complied pursuant to Section 65962.5 of the Government Code. Work will be done within existing parking areas and previously developed space. Additional environmental clearance must be obtained or any sites included on any list complied pursuant to Section 65962.5 of the Government Code. (f) Historical Resources. Physical work and changes will be done within existing parking areas. Physical work would consist of installation of electrical vehicle charging infrastructure with no expansion or change in existing use. Therefore, maintenance will not result in damages to any historic resources. If maintenance work is to affect the treatments surrounding an existing historic resource, this exemption cannot be used.
Kara Hawkins Christopher Burton, Director
Environmental Project Manager Planning, Building and Code Enforcement
Date
Deputy