To: Honorable Public Utilities Board Submitted by: /s/ Rebecca Irwin AGM-Customer Resources. From: Kelly Birdwell Brezovec Approved by: /s/

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1 AGENDA ITEM NO.: 5.A.1 MEETING DATE: 10/16/2017 ADMINISTRATIVE REPORT NO.: To: Honorable Public Utilities Board Submitted by: /s/ Rebecca Irwin AGM-Customer Resources From: Kelly Birdwell Brezovec Approved by: /s/ Utility Energy Analyst Nicolas Procos General Manager Subject: Approve an Electric Vehicle Charger Rebate Program for Home and Workplace Charging Funded by Low Carbon Fuel Standard Credit Proceeds and Approve the Establishment of an Low Carbon Fuel Standard Reserve Account RECOMMENDATION By motion, approve an Electric Vehicle Charger Rebate Program for home and workplace charging funded by Low Carbon Fuel Standard (LCFS) credit proceeds and approve the establishment of an LCFS reserve account. BACKGROUND The electric vehicle (EV) and the plug-in electric hybrid vehicle (PHEV) markets are growing rapidly across the nation and particularly in California. Improvements in battery technology and decreases in battery costs are leading to an increase in the number of electric vehicle models offered, from about 25 EV and PHEV models today to manufacturer announcements of more than 70 models in development. According to data from the California Energy Commission (CEC), 46 percent of the cumulative national EV sales during 2011 to 2016 were in California. Moreover, EVs accounted for more than 5 percent of all California new car purchases in Here in the City of Alameda, the number of customers receiving the Alameda Municipal Power s (AMP) EV discount increased by 75 percent since Today, more than 500 customers receive the discount and 24 of those customers have more than one EV. To meet this growing market, the California investor-owned utilities are expecting to invest over $1 billion in EV infrastructure programs over the next five years. Southern California Edison expects to install 30,000 charging stations and Pacific Gas & Electric (PG&E) expects to install 7,500 charging stations in the next three years. San Diego Gas & Electric has already installed more than 1,100 public charging stations and is launching a pilot to install 3,500 chargers at apartments, condominiums, and businesses.

2 AGENDA ITEM NO.: 5.A.2 MEETING DATE: 10/16/2017 ADMINISTRATIVE REPORT NO.: Among publicly owned utilities, there exists significant investment to encourage the growth of EVs through the development of EV charger rebate programs. The Los Angeles Department of Water and Power (LADWP) launched an EV charger rebate program last year with a budget of $21.5 million. Publicly owned utilities in the cities of Roseville, Palo Alto, Burbank, Pasadena, and Shasta Lake have also launched EV charger rebate programs. An EV charger supplies electric energy for the charging of EVs and PHEVs. EV chargers can be wall-mounted or on a pedestal. Home EV chargers have one port and workplace chargers typically have two. The three levels of charging are described in the table below. Charge Type Level 1 Voltage 120 V Time to fully charge EV Up to 22 hours Level V 4 to 8 hours Level 3 Fast Charge 480 V 30 minutes Application Home Home, Workplace, Public Workplace, Public Vehicle Application Most EVs and PHEVs all EVs and PHEVs EVs only EV charger installation costs are site-specific and vary greatly. Some EV owners who charge at home simply plug into a dedicated 120-volt or 240-volt outlet while others can pay up to $1,000 to install a level 2 home charger. The installation cost for a level 2 workplace charger can range from $2,000 to more than $6,000, and a level 3 fast charger can range from $12,000 to more than $60,000. An EV charger may require the installation of a new panel, transformer, concrete pad, and/or trenching. A City of Alameda building permit is required to install an EV charger. The following table provides an estimate on level 2 and level 3 EV charger costs. Type Equipment Cost Installation Cost Network Cost (year) Home Level 2 $600 to $1,200 $500 to $1,000 N/A Workplace/Public Level 2 Workplace/Public Level 3 $6,000 to $7,000 $2,000 to $6,000 or more $220 to $280 $12,000 - $35,000 $7,000 to $30,000 $200 to $900 A Department of Energy (DOE) study determined that more than 80 percent of EV charging occurs at home 1. Staff estimates that roughly 17 percent of AMP s customers receiving the utility s EV discount have installed level 2 EV chargers in their homes. It is unknown how other customers charge their EVs. They could be using a home 120-volt outlet or a home 240- volt outlet or simply charging at their workplace or a public charger. 1 Charging at Home. Electric Vehicles, Department of Energy, energy.gov/eere/electricvehicles/charginghome.

3 AGENDA ITEM NO.: 5.A.3 MEETING DATE: 10/16/2017 ADMINISTRATIVE REPORT NO.: According to a report from the LADWP, the installation of workplace chargers will result in increased EV sales and EV charger usage 2. Nearly 40 percent of respondents to a Center for Sustainable Energy survey said that access to workplace charging was very or extremely important in their decision to acquire an EV 3. In Alameda, there are seven public EV charging stations, five are level 2 chargers. The costs to charge at these stations range from free to $4.99 per hour. The two level 3 fast chargers, located at the AMP Service Center, are $0.30 per kwh to charge. California Air Resources Board s Low Carbon Fuel Standard Program On April 17, 2017, the Board gave authorization to sell AMP s banked 2,450 LCFS Program credits. Staff executed this transfer at $70/credit. The associated revenue from this transaction is $171,500. AMP expects to continue monetizing these credits at a similar level through The objective of the LCFS program, which is administered by the California Air Resources Board (CARB), is to reduce the carbon intensity of transportation fuels in California by 10 percent by Pursuant to the California Code of Regulations Sec (e)(1), LCFS program proceeds may only be used to: DISCUSSION Benefit current or future EV customers Educate the public on the economic, environmental, and societal values of EV adoption (total cost of ownership compared to gasoline-fueled vehicles) Provide rate options that encourage off-peak charging and minimize grid impacts Given the growth in the EV market and the need for EV infrastructure in the City of Alameda, AMP has the opportunity to utilize its LCFS program proceeds to respond to these trends and deliver a better customer experience, increase customer engagement and loyalty, and ensure that Alameda is able to meet the demands of the growing EV market. Staff is recommending the initiation of an Electric Vehicle Charger Rebate Program, funded by the LCFS program proceeds, to encourage EV charging at home and at the workplace by reducing the charger equipment costs for Alameda residents and local workplaces. This will help meet the increasing demand for EVs and the subsequent need for more EV infrastructure. The AMP EV charger rebate is intended to reduce the charger equipment cost to the customer, not the installation cost, which varies by specific customer site locations. The customer will own and maintain the EV charger and be responsible for all costs. The following table lists the proposed AMP EV charger rebates. 2 Webster, Michael S.; Edwards, Marcie L. (2016) Electric Vehicle Charger Rebate Program for Home, Workplace, and Public Charging: Charge-Up LA!!!. Los Angeles, CA: Los Angeles Department of Water and Power. 3 Baroody, Leslie. (2016) California Energy Commission Investments and Strategies: Electric Vehicle Charging Infrastructure EV Merit Review. Sacramento, CA: California Energy Commission.

4 AGENDA ITEM NO.: 5.A.4 MEETING DATE: 10/16/2017 ADMINISTRATIVE REPORT NO.: Proposed Rebate Rate (per EV Type Charger) Home Level 2 $500 Workplace/Public Level 2 $3,000 Home level 2 charger rebates will be added to the existing online rebate platform for residential customers. Workplace level 2 charger rebates will be processed internally by AMP staff. Level 3 fast chargers are not included in AMP s EV charger rebate program at this time. Staff will seek to add rebates for level 3 charges in the near future. The following table lists the estimated program participants and estimated budget for the program. The estimated number of rebates is based upon trends of AMP EV customers and what other California utilities have experienced. NEXT STEPS Year No. of Home Rebates No. of Workplace Rebates Home - Total Rebates Workplace Total Rebates Total Budget FY 18* 10 3 $5,000 $9,000 $14,000 FY $15,000 $30,000 $45,000 FY $25,000 $45,000 $70,000 *Quarters 3 and 4 only Upon Board approval of the proposed EV Charger Rebate Program, staff will develop and implement the program. The expected launch date is January Staff will seek approval to add level 3 charger rebates at a future date. Additionally, staff will establish a reserve account for LCFS program proceeds. FINANCIAL IMPACT The EV Charger Rebate Program will be funded by revenue from the sale of AMP s LCFS program credits. LINKS TO STRATEGIC PLAN AND METRICS KRA 1, Goal 1.1: Ensure that customers have a positive experience KRA 1, Goal 1.3: Provide Programs that support green Alameda KRA 1, Goal 1.4: Provide programs that increase revenue EXHIBIT A. PowerPoint Presentation

5 AGENDA ITEM NO.: 5.A. MEETING DATE: 10/16/2017 EXHIBIT A Electric Vehicle Charger Rebate Program October 16,

6 Overview Electric Vehicles Overview Electric Vehicle Chargers Low Carbon Fuel Standard Program Proposed Rebate Next steps 2

7 Electric Vehicle Overview Electric vehicle (EV) Plug-in electric hybrid vehicle (PHEV) Growing market 46% of national EV purchases were in CA, % of all new CA cars in 2016 AMP s EV discount increased by 75% since customers receive discount today 3

8 State Trends Investor-owned utilities (IOUs) investing $1 billion in EV infrastructure over the next five years Over 40,000 charging stations across the state Publically-owned utilities (POUs) in northern and southern CA launching EV charger rebate programs 4

9 Electric Vehicle Chargers Charge Type Time to fully charge EV Application Vehicle Application Equipment & Installation Cost Level 1 Up to 22 hours Home Most EVs and PHEVs N/A Level 2 Home 4 to 8 hours Home All EVs and PHEVs $1,100 - $2,200 Level 2 Nonresidential 4 to 8 hours Workplace, Public, Multifamily All EVs and PHEVs $8,000 $13,000 Level 3 Fast Charge 30 minutes Workplace, Public EVs only $19,000 - $65,000

10 Electric Vehicle Chargers Use Case Department of Energy study shows > 80% of EV charging is at home Less than 20% of AMP EV discount customers have installed a Level 2 charger Workplace chargers result in increased EV sales and charger use 40% of potential EV owners cited workplace charging as important Alameda public chargers Seven stations, five level 2, two level 3

11 Electric Vehicle - Benefits AMP looks to enable customers to move away from gasoline cars and to EVs Reduction in greenhouse gases from transportation Aligned with City s Climate Action Plan Better customer experience Helping Alameda meet the demands of a growing EV market 7

12 Low Carbon Fuel Standard Program LCFS Program provides credits for providing alternative, low-carbon fuels AMP provides electricity to all EVs registered in Alameda (DMV records) Proceeds from sale of credits must go towards Benefit current or future EV customers Educate the public on the economic, environmental, and societal values of EV adoption (total cost of ownership compared to gasoline-fueled vehicles) Provide rate options that encourage off-peak charging and minimize grid impacts

13 EV Charger Rebate AMP proposes to use funds from the LCFS Program to provide an EV charger rebate $171,500 available today Charger rebate to incentivize the purchase of Level 2 chargers Level 3 chargers may be added in the near future

14 Rebate Type Proposed Rebate Rate (per EV Charger) Home Level 2 $500 Non-Residential Level 2 $3,000 Residential rebates will be added to existing online rebate portal Non-residential rebates will be processed by AMP staff

15 Next Steps Upon Board approval of the proposed EV Charger Rebate Program, staff will develop and implement the program Expected launch date is January 2018 Staff will seek approval to add level 3 charger rebates at a future date Staff will establish a reserve account for LCFS program proceeds 11

16 Contact Information Kelly Birdwell Brezovec Utility Energy Analyst