Law and Legislation Committee Report 915 I Street, 1 st Floor Sacramento, CA

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1 Law and Legislation Committee Report 915 I Street, 1 st Floor Sacramento, CA File ID: May 8, 2018 Discussion Item 06 Title: Curbside Electric Vehicle (EV) Charging Guidance Location: Citywide Recommendation: 1) Receive and provide direction on pilot program participation targets, and 2) pass a Motion amending the sign ordinance to facilitate EV charging and forwarding to City Council for approval. Contact: Jennifer Venema, Sustainability Manager, (916) , Lucinda Willcox, Program Manager, (916) , Department of Public Works; Sandra Yope, Senior Planner, (916) ; Community Development Department Presenter: Jennifer Venema, Sustainability Manager, (916) , Department of Public Works Attachments: 1-Description/Analysis 2-Sign Code Ordinance 3-Attachment - Background Metrics for Curbside Charging and Citywide EV Targets Susana Alcala Wood, City Attorney Mindy Cuppy, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of 11

2 File ID: Discussion Item 06 Description/Analysis Issue Detail: As part of the implementation of the City s Electric Vehicle Strategy, staff is developing a pilot program for permitting EV charging infrastructure in the public right-of-way along City streets, or curbside. This program is being coordinated with other desired uses of the public right-of-way, including car-share programs, and determinations regarding appropriate parking-meter-revenue offsets. For the curbside program, staff has evaluated best practices and lessons from other cities, engaged with the private sector, and is finalizing program guidance with a goal to launch a pilot program in early Summer Staff is seeking further direction on key issues in order to finalize the pilot program. The City is responsible for managing activities that occur in the public right-of-way to ensure safety and public convenience. The City manages the use of public parking spaces and the adjacent curb, particularly in areas of high parking demand. By allowing the installation of EV infrastructure in the right-of-way, the City can expand opportunities for EV charging where access to off-street parking or other charging options are limited. Expanding public access to EV charging infrastructure is key for accelerating EV adoption. Availability of charging infrastructure in the right-of-way also serves to increase public awareness of EV viability. Recent state legislation now permits local agencies to enforce restriction of certain public parking spaces in the right-of-way for electric vehicle use only, which allows local agencies to better implement curbside electric vehicle charging opportunities. Curbside charging is still being explored in major cities in California and the West Coast. Most curbside chargers in California are publicly owned and operated; private investment in curbside chargers is emerging, along with charging technology. The City is one of the leaders in exploring and implementing curbside charging. Investments in EV infrastructure can be costly, with a need for financial return when installed by private investors. The intent of the pilot program is to test different approaches in an emerging business technology, so the City and vendors can determine what is most effective. With adoption of the EV Strategy, staff was asked to review opportunities to allow a pilot for an EV charging business model that uses advertising or sponsorship to offset costs so charging can be made available at no cost to the user. Allowing sponsorship for EV charging stations would enable the operator to provide EV charging as a free service or at greatly reduced rates, with the costs of electricity paid by the sponsorship itself. This approach can expand EV charging availability and visibility, supporting the City s EV goals. Amendments to the sign code are necessary to permit the inclusion of sponsorship signage on EV-charging stations in the right-of-way. City of Sacramento May 8, 2018 powered by Legistar Page 2 of 11

3 File ID: Discussion Item 06 Attachment 2 would amend the sign ordinance to allow EV installations with sponsorship signs. This ordinance directly advances the EV Strategy by allowing the display of facility signs that identify the facility s sponsor. The City s sign regulations, established in City Code chapter , currently do not allow such signage. City Code Section does exempt certain signs from the regulations, and the proposed ordinance will add a new exemption for sponsorship signs on the EV charging facilities that meet specific criteria for use. Among other actions, the new exemption would (1) require the EV charging facility be located on City property and provide the public with access to subsidized, non-proprietary charging of electric vehicles, under an agreement between the City and the owner of the facility; (2) allow up to two sponsorship signs on each facility; (3) limit the display area of each sign to eight square feet; and (4) require that any sign illumination be from an internal light source. Additionally, the signs must be static and meet additional criteria within the sign code. As written, the amendments do not include provisions to allow general advertising or animated signage. The area currently in highest demand for curbside charging is the Central City, with the greatest parking demand, parking-related revenues, and parking-space turnover. Staff is requesting Council to provide direction on establishing limits for initial and/or longer-term pilot participation, such as a maximum number of installations to be permitted in high demand areas or by individual providers. Initially, staff had considered establishing a preliminary pilot cap of up to twenty curbside projects based on similar efforts in other cities. Some considerations are as follows: Limits on the number of installations could help ensure that early learnings from the pilot are evaluated and the program updated before expanding beyond the pilot phase Strict caps for individual providers could deter some models from viability that may need economies of scale to be feasible, such as sponsorship models which require a minimum number of chargers to attract sponsorship that would subsidize charging for the user Limits during the pilot could minimize loss of parking opportunities in high-demand areas for non-evs, which still represent the majority of vehicles seeking parking Other cities implementing similar programs are typically launching at smaller scales with less than twenty installations. Two exceptions are Philadelphia and Los Angeles: o Los Angeles has installed 119 curbside chargers to date, with another 150 planned. However, these have been public installations implemented by the Bureau of Street Lighting and the Department of Water and Power. City of Sacramento May 8, 2018 powered by Legistar Page 3 of 11

4 File ID: Discussion Item 06 o Philadelphia permitted 67 residential curbside chargers, but a moratorium was placed on the program due to parking controversies. Community members complained that these spaces became de facto personal parking spots. Tables 1 4 in Attachment 3 provide background information on current and target levels of EV charging infrastructure in Sacramento, in addition to examples of curbside charging implementation in other cities. Pending direction from the Law and Legislation Committee, staff will prepare final drafts for the Curbside Guidance. Staff is developing this program as one of the City s priority EV initiatives. Additional related efforts are underway that staff will separately bring to Council for action during Spring and Summer 2018, including parking authorizations for on-street EV designations, and creation of a car-share framework. Policy Considerations: On July 18, 2017, City Council adopted Resolution No , directing City staff to prepare an EV Strategy and implement related EV initiatives, including development of guidance for curbside EV chargers in the public right-of-way. City Council adopted the EV Strategy on December 12, The EV Strategy establishes goals for increasing household ownership of zero-emission vehicles (ZEVs) from current levels of 2% to 35% by 2025, with a target for increasing public EV-charging infrastructure from approximately 450 EV chargers to over 4,000 chargers to support these adoption levels. Actions in the EV Strategy also call for creation of permit guidance for curbside charging infrastructure. The EV Strategy is intended to promote increased adoption of ZEVs, supporting the General Plan s sustainability goals. The EV Strategy calls for creation of permitting guidance for curbside charging and updates to other public charging programs. The EV Strategy identifies the following primary criteria: Serve multi-family or workplace charging, or EV car share or similar shared mobility programs (Action 1.4.2) Utilize non-proprietary connectors, with any DC fast charging supporting both Combined Charging System (CCS) and CHAdeMO charging standards (Action 1.4.2) Avoid conflicts with non-vehicular transportation modes (Action 1.4.3) Encourage turnover by phasing in requirements for charging in the right-of-way as a paid service, except for installations that primarily serve low-income or disadvantaged communities (Action 1.4.4) Develop a phased approach to update the City s EV Parking Program to increase charging access, encourage other types of ZEVs, encourage at-home charging by patrons when feasible, and ensure the availability of chargers for broad use (Action 4.2.2) City of Sacramento May 8, 2018 powered by Legistar Page 4 of 11

5 File ID: Discussion Item 06 Evaluate technology options to increase charging turnover and access at City garages, such as managed charging systems, technologies to allow for driver queuing, and fees for cars that charge beyond posted time limits (Action 4.2.3) In addition to providing charging access in the right-of-way, the EV Strategy calls for optimizing access in City garages by updating the City s EV Parking Program. Staff is currently investigating methods to improve charging availability to highly utilized chargers in City garages, including upgrading infrastructure and establishing appropriate fees to charge. Sign regulations are used to preserve and improve the appearance of the City as a place in which to live; to safeguard and enhance property values; to protect public and private investment in buildings and open spaces; and to promote the public health, safety, and general welfare. Allowing sponsorship signs to promote additional EV infrastructure will facilitate greater adoption of ZEVs. Environmental Considerations: The recommendation in this report consists of an administrative activity such as general policy making and is not a project under the California Environmental Quality Act (CEQA), Guidelines Section 15378(b)(2). Sustainability: EV technologies and programs implement adopted City Council sustainability policies. The City s 2012 Climate Action Plan includes EV strategies to help achieve community-wide greenhouse gas (GHG) emissions targets. The transportation sector accounts for 48% of community-wide greenhouse gas emissions, the largest single sector in the community. Electrification of the transportation sector leads to reductions in petroleum use, both reducing greenhouse gas emissions and improving local air quality. Commission/Committee Action: None Rationale for Recommendation: Staff is seeking direction from the Committee to 1) review the proposed sign code amendments and determine whether to pass a motion to forward the Ordinance to the Council for consideration; and 2) provide guidance on what might be considered an acceptable level of curbside charger installations for the pilot program. Staff is developing the pilot curbside program as one of the City s priority EV initiatives. Additional related efforts are underway that staff will bring for action during Spring and Summer 2018, including parking authorizations for on-street EV designations, and creation of a car-share framework. City of Sacramento May 8, 2018 powered by Legistar Page 5 of 11

6 File ID: Discussion Item 06 Financial Considerations: Financial considerations related to EV charging, including potential license fees, will be discussed as part of a future item. Amending the sign ordinance itself has no financial consequences. Local Business Enterprise (LBE): Not applicable. City of Sacramento May 8, 2018 powered by Legistar Page 6 of 11

7 ORDINANCE NO Adopted by the Sacramento City Council, 2018 AN ORDINANCE AMENDING SECTION OF THE SACRAMENTO CITY CODE RELATING TO SIGNS BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO: SECTION 1. The City Council finds as follows: According to the Sacramento Metropolitan Air Quality Management District, air pollution is a serious public-health problem for the residents of Sacramento County. The Sacramento metropolitan area is classified as a severe nonattainment area for federal ozone levels, a moderate nonattainment area for federal 24-hour PM-2.5 levels, and a nonattainment area for state annual PM-10 levels (see In addition, the American Lung Association has ranked the Sacramento-Roseville metropolitan area as the fifth most polluted area in America for ozone in 2018 (see American Lung Association, State of the Air 2018 (2018), at healthy-air/state-of-the-air/sota-2018-full.pdf), representing a worsening score from the region s 2017 ranking as the eighth worst for ozone (see American Lung Association, State of the Air 2018 (2017), at During the summer months, the air pollutants in Sacramento, including ground-level ozone, come mostly from mobile sources powered by internal-combustion engines, such as the cars, trucks, and buses. Persons who suffer from heart disease (such as coronary artery disease or congestive heart failure) or from respiratory disease (such as asthma, emphysema, or chronic obstructive pulmonary disease) are most at risk from air pollution, as are children whose lungs are still developing and pregnant women. Even for healthy persons, polluted air can cause respiratory irritation or breathing difficulties during exercise or outdoor activities, resulting in wheezing, chest pain, dry throat, headache, nausea, reduced resistance to infection, increased fatigue, and weakened athletic performance. To help counter the injurious effects of air pollution from mobile sources, the City Council desires to promote and facilitate the public s use of electric vehicles ( EVs ) on city streets by encouraging public and private sponsorship of facilities that offer EV charging at subsidized rates. This ordinance directly advances this end by allowing the display on such facilities of signs that identify the sponsors of the subsidized EV charging. At the same time, this ordinance will advance several important City policies: JPC 1215 LS Draft (ProLaw ) Page 7 of 11

8 The City s 2035 General Plan commits the City to continue to collaborate with state and regional partners to support rapid adoption of zero emission and low-emission vehicles, including public and private EV-charging stations (Policy M1.5.5). The City s 2035 General Plan establishes targets for the reduction of community-wide greenhouse-gas ( GHG ) emissions, calling for a 15% reduction below 2005 baseline levels by 2020, and 49 and 83% reductions by 2035 and 2050, respectively (Policy Environmental Resources 6.1.5). Reducing vehicle emissions from transportation is a key strategy to achieving community GHG targets. The City s Electric Vehicle Strategy, which the City Council adopted on December 12, 2017, Motion No (see Vehicle-Initiatives/EV-Strategy), directs the City to Advance the next generation of transformational and highly visible [zero-emission vehicle] mobility applications and programs and to Increase the visibility and awareness of [zero-emission vehicles] as a viable transportation option (Goals 3 and 4). The Electric Vehicle Strategy also calls for the City to Prioritize public charging for those without other charging options (Action 1.4). Currently the City has about 430 EV-charging stations, far short of the City s 2025 goal of 3,800 EV-charging stations (Table 2). The ordinance will help attract the investment needed to achieve this goal. The City s 2012 Climate Action Plan ( CAP ) documents that the transportation sector accounts for 48% of community-wide 2005 baseline GHG emissions. To reduce GHG emissions and thus improve air quality, the CAP calls for replacing internal-combustion vehicles with EVs. SECTION 2. A. Subsection G is added to section of the Sacramento City Code, to read as follows: G. Sponsorship signs for EV-charging stations. Signs affixed to a structure or apparatus that provides the public with access to subsidized, non-proprietary charging of electric vehicles and is located on city property, as defined in section , under an agreement between the city and the owner of the structure or apparatus. 1. Each such structure or apparatus (an EV charging station ) may have up to two sponsorship signs that display instructions for use and identify the sponsor or sponsors of the EV charging station. 2. Each sponsorship sign for an EV charging station must comply with all of the following: a. the display area of each sign may not exceed eight square feet; JPC 1215 LS Draft (ProLaw ) Page 8 of 11

9 b. any illumination must be from a light source within the sign; c. the sign may not use digital-display technology; d. the sign must comply with sections (if applicable), , , , and ; e. general advertising may not be displayed; f. the sign must not constitute a nuisance or hazard to vehicular traffic, pedestrians, or adjacent property; and g. the sign must satisfy all requirements, conditions, and restrictions in the agreement between the City and the owner of the structure or apparatus. B. Except as amended by subsection A above, all provisions of section remain unchanged and in effect. JPC 1215 LS Draft (ProLaw ) Page 9 of 11

10 Attachment Background Metrics for Curbside Charging and Citywide EV Targets All data shown is for the City of Sacramento, unless otherwise noted. Abbreviations L2: Level 2 charger; charger at volts, miles of range per hour of charge. DCFC: direct current fast charger; a charger at 400 to 500 volts and 50 kilowatts or more, providing an 80% charge in less than 30 minutes. Table 1: Examples of Curbside Program Installations in Other Cities Installed to Date In Process/ Permitting Total - Installed and In Process Berkeley 6 L2 1 L2 7 L2 Burbank 16 L L2 Los Angeles 119 L2 150 L2 269 L2 Philadelphia 67 L L2 Seattle 2 DCFC 4 DCFC 6 DCFC Vancouver 0 1 L2 2 DCFC 1 L2 2 DCFC Notes 5 residential installations, 1 residential project in permitting, and 1 public installation by the City at a library Public installations by Burbank Water and Power, funded by a California Energy Commission grant Public installations by Bureau of Street Lighting and Department of Water and Power Program is currently on hold and closed to additional installations Public installations by the electrical utility additional private permit applications are in process DCFC installed by the electrical utility. Pilot program cap of 20 installations (15 residential and 5 nonresidential), with five residential projects anticipated by Summer 2018 Table 2: EV Strategy Targets Key Performance Indicators Current 2025 Target Households with ZEVs 2% 35% Number of Registered ZEVs 3,200 75,000 Supportive Performance Indicators Current 2025 Target Public or workplace chargers - L ,500 Public or workplace - DCFC Total public or workplace 430 3,800* * Based on a target of approximately one public EV charger for every 20 EVs. Page 10 of 11

11 Attachment Other EV Forecasts Table 3: Sacramento Area Council of Governments (SACOG) Forecast Forecast 2036 Low Scenario 2036 High Scenario Public or workplace - L ,224 Public or workplace - DCFC Total public or workplace 852 1,408 * Based on SACOG forecasts and assumptions on travel and charging behavior, including the SACSIM travel demand model (SACSIM). Source: SACOG (2017). Personal communication, Raef Porter, Senior Analyst. RPorter@sacog.org Table 4: Sacramento Municipal Utility District (SMUD) Estimates Estimates* Target Countywide DCFC 66 City DCFC (estimated) Approx * Estimated target assuming a distribution of 1 DCFC every 3 miles, based on recommendations from SMUD research. Source: SMUD (2018). Personal communication, Bill Boyce, Manager, Electric Transportation, Distributed Energy Strategy, Bill.Boyce@smud.org. Page 11 of 11