County of Sonoma Agenda Item Summary Report Agenda Item Number: 22 (This Section for use by Clerk of the Board Only.) Clerk of the Board 575 Administration Drive Santa Rosa, CA 95403 To: Board of Directors of the Northern Sonoma County Air Pollution Control District Board Agenda Date: August 16, 2016 Vote Requirement: Majority Department or Agency Name(s): Northern Sonoma County Air Pollution Control District Staff Name and Phone Number: Rob Bamford, 707-433-5911 Title: Supervisorial District(s): Fourth, Fifth, and a portion of First 3-2-1 Go Green! Electric Vehicle and Charger Rebate and Grant Programs Recommended Actions: 1. Authorize the Air Pollution Control Officer of the Northern Sonoma County Air Pollution Control District to initiate and administer the 3-2-1 Go Green! Electric Vehicle (EV) and Home Charger Rebate Program, and the 3-2-1 Go Green! Community EV Charger Grant Program, including but not limited to promoting and marketing the programs to constituents, approving and signing rebate application forms, evaluating and approving grant applications, disbursing rebate funds for EV and home-charger purchases, signing funding agreements, and disbursing grant funds for the installation of community EV chargers. ($240,000). 2. Authorize the Air Pollution Control Officer to modify parameters of both of the 3-2-1 Go Green! programs as needed in order to streamline and improve the functionality of the programs, as approved by District Counsel, and provided there is no increase in the total grant funding amount. Executive Summary: Staff of the Northern Sonoma County Air Pollution Control District (District) is requesting authorization to allow the Air Pollution Control Officer (APCO) to initiate and administer the 3-2-1 Go Green! Electric Vehicle and Home Charger Rebate Program ( Rebate Program ), as well as the 3-2-1 Go Green! Community EV Charger Grant Program ( Grant Program ). This item also requests authorization for the APCO to modify the programs if needed, provided the modifications do not increase the authorized total grant funding amount. In 1991, the California Health and Safety Code was amended by AB 2766 to allow local air pollution control districts to collect fees in the form of a surcharge on motor vehicle registrations. The funds generated by the surcharge are to be used to characterize and reduce air pollution from motor vehicles used within the air district. Since the inception of the Vehicle Pollution Mitigation Program ( VPMP ) the District has funded a number of diverse projects to reduce the impact of vehicle emissions within Sonoma County. Many of these projects involved installation of community electric vehicle charging
stations, in order to encourage increased use of electric vehicles. Grant funded projects include the North County Electric Vehicle Infrastructure Project which was awarded to the County of Sonoma General Services Department for installation of several EV charging stations at municipal locations within the boundaries of the District, in addition to private sector installations. The transportation sector is the biggest contributor to California s greenhouse gas emissions, accounting for approximately 40% of these emissions. California leads the nation in technological innovation of lowemission and zero-emission vehicles (ZEVs) and is the leader in establishing laws, policies and programs for reducing greenhouse gas, and protecting air quality and the environment. On March 23, 2012, CA Governor Brown issued an executive order for the rapid commercialization of ZEVs including an EV charging infrastructure to accommodate ZEVs and a target of 1.5 million ZEVs on the road by 2025. Sonoma County would need approximately 16,000 ZEVs as its part of this state target. In its local, yet influential leadership role, the District presents its 3-2-1 Go Green! Grant and Rebate Programs to incentivize and popularize use of EVs and support home, community, and local area EV infrastructure, with available low income assistance. The Rebate Program represents the District s most ambitious effort to date to incentivize electric vehicle use, and its first rebate program to establish incentives for the actual purchase or lease of electric vehicles for District residents. This rebate will be allowed to be combined with electric vehicle rebates from other organizations, such as the California Air Resources Board Clean Vehicle Rebate Program, and any other rebate programs that might be available in the future. This is the most comprehensive set of EV incentive programs offered by a state air district. The District developed the design and parameters of these new programs from it experiences collaborating with its state and local strategic partners including: Air Resources Board, Sonoma County Transportation Authority/Shift, Sonoma Clean Power, Bay Area Air Quality Management District and the CA Plug In Electric Vehicle Collaborative to bring the District and Sonoma County in line with state targets in 2025. Budget In the District s current budget, $240,000 in VPMP funds are approved for use in the initial startup of the two 3-2-1 Go Green! Programs. 3-2-1 Rebate and Grant projects will be processed and approved on a first-come, first-served basis. When this initial funding is depleted, the District will have the resources to extend the 3-2-1 Go Green! Programs using additional available VPMP funds, at the Discretion of the Board via another Board action. Electric Vehicle and Home Charger Rebate Program The Rebate Program provides rebates to District residents for the purchase of eligible new, clean vehicles, and in-home charging units. Chargers are only eligible for the rebate when paired with purchase/rebate of an eligible vehicle. The proposed rebate amounts are as follows (in no case will rebate amounts exceed actual costs): Eligible Vehicle: Battery Electric /Hydrogen Fuel Cell Plug-In Hybrid Charger Install* Neighborhood Electric Vehicle /Electric Motorcycle Maximum Rebate: $3,000 $2,000 $1,000 $1,000 *Chargers are only eligible for the rebate when paired with purchase/rebate of an eligible vehicle.
The District will also be offering a low-income supplement of $1,000. The pre-requisite for receiving this supplemental rebate will be low income status according to the current guidelines published by the Federal Register, as well as participation in other low-income programs, for example PG&E s California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) programs. Important details of the Rebate Program include: 1. Advertisement: Upon Board approval, the District will commence advertisement and outreach to market and promote the Program. Advertising includes press releases in local newspapers, online notices via the District website, distribution of handouts to local communities, and informational pamphlets offered at local dealerships. A sample advertisement is attached to this item. Appropriations for advertising costs are available in the FY 16-17 budget in the District s Operations Fund. 2. Program Initiation and Administration: Upon Board approval, the District will make applications available to the public via its website, through dealerships, and by request, and will adhere to the procedures laid out in the Program Guidelines form, attached to this item. The sequence of events for projects within the Program is as follows: A. Applicant must purchase or lease an eligible new vehicle before applying for a rebate (and may also choose to purchase and install an in-home charger). Only Eligible Vehicles/chargers purchased after August 16, 2016 will qualify for a rebate. The Rebate Packet must be submitted within 6 months of purchase/lease of Eligible Vehicle/Charger. B. After the purchase or lease of the new vehicle (and charger installation), applicant may apply for a rebate by submitting a complete rebate packet to the District. C. The District reviews the application and if it is complete and eligible, generates a check to be mailed to the applicant within 45 days of the application submittal. The District reserves the right to reduce the final rebate amount disbursed to the applicant if the rebate exceeds 25% of the total purchase price of the vehicle. D. Applicant must retain ownership or lease of the new vehicle for at least 36 months immediately after the purchase/lease. If the vehicle is returned or sold before 36 months, or if the applicant moves out of District boundaries in that time period, the District reserves the right to recoup all or a pro-rated amount of the original rebate from the applicant and/or pursue any other legal actions deemed appropriate. The District will periodically check vehicle identification numbers with vehicle registrations to ensure that rebate recipients meet the 36-month requirement. Grant Program for Community Electric Vehicle Chargers: The District has been issuing grant funding for Community EV Charging Station projects for over 5 years under the broad umbrella of the VPMP Program and in support of the Sonoma County Local Government Electric Vehicle Partnership s goals to provide EV infrastructure throughout the County. During this time, it has become apparent that these types of projects are more popular than other VPMP Projects, and they are also evaluated and handled differently than the more complex vehicle mitigation projects for which the VPMP grant reimbursement program was originally designed.
Streamlining the way the District administers these simpler, more popular EV Charging Station projects would help the District more efficiently distribute grant funding for community EV Chargers and continue in its commitment to contribute to the Sonoma County Electric Vehicle Trail. Grant Program details are as follows: 1. Advertisement: The proposed Grant Program outreach would be similar to that of the Rebate Program; it would be advertised and promoted in a similar way under the 3-2-1 Go Green! label. 2. Program Initiation and Administration: Eligible projects for the Grant Program would be evaluated and managed similarly to the EV Charger installation projects the District has been funding regularly over the past 5 years. Eligible projects would involve purchase and installation of publicly-available EV chargers, installed at private, commercial, or government properties throughout the District and required to be available for community use for a minimum of 5 years. Approving the Grant Program under the umbrella of 3-2-1 Go Green! would change the way these types of grants are currently evaluated and administered. Namely, community charging station projects would have a standardized funding amount, and would no longer be individually presented to the board for approval. The APCO would be authorized to sign funding agreements and projects would be funded according to the matrix below. The District is requesting approval for the Grant Program in the context of 3-2-1 Go Green! in order to boost promotion of this project type, streamline and improve District practices for approval of EV charging station grants, and standardize the incentive amounts. Proposed grant amounts for 3-2- 1 Grant Program projects are as follows (in no case will grant amounts exceed actual costs): EV Charger Type: Maximum Grant: Level 1 (AC 120V) $1,000 per charger Level 2 (AC 240V) $2,000 per charger Level 3 Charger Installation (DC Fast Charge) $5,000 per charger $3,000 per charger (no more than $15,000 per project) Community charger projects under the Grant Program must be approved by the District, with funding agreements signed, prior to the completion of the project to receive funding. Modifications The APCO is requesting authorization to modify the Rebate and Grant Programs if needed, provided the modifications are approved by District Counsel and do not increase the authorized total grant funding amount. The Rebate Program is one of the first of its kind. Only one other local air district runs a similar EV rebate program. Additionally, because this is the first time the District has standardized and streamlined its grant funding of community EV Chargers, given the nature of new grant programs, it is likely that unforeseen details will arise as the District begins accepting applications. Possible modifications include, but are not limited to, program deadlines, documentation requirements, grant agreement terms and conditions, and maximum rebate amounts for different vehicle types and for EV Chargers and Installation. Giving the APCO authority to modify the Rebate and Grant Programs will give the District the ability to respond quickly to any problems or issues that may arise and keep the Programs running as smoothly and efficiently as possible.
Prior Board Actions: June, 1991: Res No. 91-1104 authorized the NSCAPCD to collect the VPMP motor vehicle surcharge. December 15, 1992: Res No. 92-1853 authorized District procedure for implementing VPMP program. May 12, 2009: Res No. 09-0447 authorized the NSCAPCD to join the Sonoma County Local Government Electric Vehicle Partnership. Strategic Plan Alignment Goal 2: Economic and Environmental Stewardship The 3-2-1 Go Green! Programs are in line with the District s mandate to protect air quality and public health by implementing and developing programs to mitigate the negative impacts of air pollution. Expenditures Fiscal Summary - FY 16-17 Funding Source(s) Budgeted Amount $ 240,000 $ Add Appropriations Reqd. $ State/Federal $ $ Fees/Other $ 240,000 $ Use of Fund Balance $ $ Contingencies $ $ $ Total Expenditure $ 240,000 Total Sources $ 240,000 Narrative Explanation of Fiscal Impacts (If Required): Appropriations for this program are included in the FY 16-17 Vehicle Pollution Mitigation Program ( VPMP ) budget. Staffing Impacts Position Title (Payroll Classification) Monthly Salary Range (A I Step) Additions (Number) Deletions (Number) Narrative Explanation of Staffing Impacts (If Required): Attachments: 3-2-1 Go Green! Rebate Application and Request Packet; 3-2-1 Go Green! Community EV Charger Grant Application; Sample Community EV Charger Grant Funding Agreement
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