COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: September 1, 2026
SUBJECT: Adoption of a Resolution Approving an Agreement with PG&E Electric Vehicle Fleet Electrification Program for the Transit Center
Description:
The City Council will consider adopting a Resolution approving an agreement with Pacific Gas and Electric Company (PG&E) Electric Vehicle Fleet Electrification Program for the City's Transit Center and approving related budget amendments and implementation actions.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution approving an agreement with Pacific Gas and Electric Company (PG&E) to participate in the PG&E Electric Vehicle Fleet Electrification Program at the Transit Center; and
2. Authorize the Finance Director to amend the Transit Enterprise Fund budget to reflect the receipt of program incentive and rebate revenues; and
3. Authorize the City Manager, or designee, to execute agreement, letter of commitment, and all documents necessary to implement the program.
BACKGROUND:
Senate Bill 350 directs the California Public Utilities Commission (CPUC) to address transportation emissions by supporting widespread transportation electrification. In response, Pacific Gas and Electric Company (PG&E) establ ished its EV Fleet Program to help organizations cost-effectively install charging infrastructure.
In 2022, the City participated and benefited from the PG&E infrastructure readiness programs to electrify the SMRT bus yard (1303 Fairway Drive). As the PG& E eFleet Ready Program is nearing completion, the City is pursuing a second opportunity to participate in this program before it ends, for adding opportunity and resiliency charging capabilities at the City’s Transit Center (400 East Boone Street), to whic h PG&E has issued a separate and new contract offer (Reference No. FLEET001335780).
Rather than relying solely on a full charge at the bus yard, charging infrastructure at the Transit Center supports what is called “opportunity -charging,” allowing buses t o top-off 2 during layovers, extending the effective range of electric buses and creating greater schedule flexibility and future -proofing. It further provides a second energized charging site for the fleet, offering backup capacity, or resiliency, if the bu s yard's charging infrastructure is ever unavailable helping to “future-proof” the service.
DISCUSSION:
The new agreement establishes a project at the Transit Center under the Make -Ready Incentive Option. As in the past contract, under this framework, PG &E will design, construct, own, and maintain the necessary infrastructure up “to the meter” (TTM) at no cost to the City. The City of Santa Maria will design, build, own, operate, and maintain the infrastructure “behind the meter” (BTM).
The contract maps out an extensive utility footprint, including a 3,500A, 480/277V oversized meter service and a 1,500kVA pad -mount transformer at the Transit Center.
This utility backbone supports a total anticipated charging load of 1,555.5 kW. The preliminary site design provides for 17 fleet charging stalls to be served by 17 charging stations. To secure this infrastructure, the contract commits the City to deploy 17 transit buses at this location by December 31, 2029.
The contract term is ten years, commencing on the date the charging equipment becomes operational. Consistent with the City's previous participation in this program, the City will be responsible for operating and maintaining all behind-the-meter infrastructure, granting required easements, and maintaining the insurance coverage specified in the agreement.
The contract also includes a vehicle deployment commitment. If the City does not deploy the number of buses committed to in the timeline above, PG&E may, at its discretion, require the City to reimburse PG&E for infrastructure costs incurred in reliance on that commitment, including equipment, site design, and installation costs. Staff considers this risk acceptable because the City has successfully participated in this program previously, has already deployed zero-emission buses, has identified future fleet expansion needs, and has secured funding for the Transit Center improvements and at least half of the required fleet in the FY 2026–28 budget.
Alternative(s)
Do not authorize participation in the PG&E Electric Vehicle Fleet Electrification Program.
Staff does not recommend this option, as it would forfeit up to $578,000 in combined incentives and rebates and delay infrastructure needed to support the City's incoming zero-emission transit buses.
Fiscal Considerations
There is no cost to the City to participate in the program. The contract provides the following financial incentives to fund the Transit Center's infrastructure:
Infrastructure Incentive: An EV supply infrastructure incentive covering up t o $153,000 (or 80% of customer-owned BTM infrastructure costs). EV Charger Rebate: A capped rebate of up to $425,000 (up to 50% of purchase costs) for the 17 chargers.
3 All documentation to claim these incentives and rebates must be submitted to PG&E no later than March 31, 2028; costs for chargers acquired after that date are not eligible for rebate. City-owned construction costs exceeding these incentives will have no impact on the City’s General Fund and will be fully funded through existing transit fund ing sources, as already identified in the FY 26-28 budget cycle.
Impact on the Community
Establishing charging capabilities at the Transit Center will lower local greenhouse gas emissions and criteria air pollutants while creating greater service reliability and flexibility for growth. This action supports the City's compliance with the California Innovative Clean Transit (ICT) regulation, which requires public transit agencies to transition to 100% zero- emission technology by 2040.
ATTACHMENT(S)
A. Resolution
B. PG&E EV Fleet Program Contract No. FLEET001335780
C. Preliminary Site Design Layout