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HomeMy WebLinkAbout14 Fast Charging Grantenda Item # CONSENT To: Board of Directors 14 From: Steven Poncelet Date: May 04, 2016 Subject: Consideration of a Letter of Intent for CEC DC Fast Charging Grant 1. WHY THIS MATTER IS BEFORE THE BOARD The District's application for a California Energy Commission (CEC) grant requires formal documents and an eventual commitment of funds which require Board approval. 2. HISTORY The District has been studying the emergence of electric vehicles in our community for many years. This includes the District's: Level 2 public access electric vehicle charging station in Meadow Park in 2007; purchase of an electric vehicle for the fleet in 2014; and, most recently in 2015, construction of two Level 2 public access charging stations at the Train Depot and Pioneer Commerce Center. District Staff have also tracked the emergence of electric vehicles through participation in State-wide groups including California Municipal Utilities Association's (CMUA's) Electric Transportation Committee and Northern California Power Agency (NCPA). The District has gained additional experience through serving the 14 Tesla DC Fast Charge stations in Truckee. Electric vehicle charging represents one of the few load growth opportunities for electric utilities. District Staff are investigating the impacts to overall load, potential impacts to our distribution system, and whether the District should consider entering the public access charging market for the long-term. Understanding the impacts to the District's electric load and distribution system is critical so that we are able to recover the full costs associated with serving this new load. Entering the public access charging market is an opportunity to create new revenue sources for the District while serving an emerging community need. Truckee is turning out to be a major stop on the 'electric highway'. Truckee is an iconic destination for our 2nd home owners and the regions many visitors. Truckee is also the gateway to a large portion of California from the Eastern Sierra to Lake Tahoe to the Northern Sierra. Truckee is a major stop on the 180 corridor. Finally, Truckee's residents are starting to buy electric vehicles. Today, the majority of the vehicles we see in Truckee are Tesla's. This is due to their outstanding range (200-300 miles) and the fact that they own second homes or come to visit the region. Tesla's investment in 14 DC Fast Chargers is very significant and places Truckee as having more DC Fast Chargers than almost anywhere in the Nation. As other, more affordable electric vehicles come on the market with expanded range, we expect to see a big increase in the need for public access charging stations (Tesla stations are only for Tesla owners). 3. NEW INFORMATION There is an opportunity to secure CEC grant funds to install public access DC Fast Chargers in the greater Truckee region. To date, the District has only owned and operated Level 2 chargers (220 VAC, ~2-3 hour charge time). DC Fast Chargers (480 VDC, 3-Phase, ~20-30 minute charge time) are significantly more expensive but represent the most significant portion of the emerging electric vehicle charging market. On January 26, 2016, the California Energy Commission released a grant funding opportunity, GFO-15-603, for "DC Fast Chargers for California's Interregional Corridors". Among the corridors being addressed by the grant solicitation is the k80 corridor from Auburn to west of the Nevada state line. The grant solicitation calls for DC fast charging sites spaced along 1-80 between Auburn and the Nevada State line. Each site is also required to have a Level 2 charger. The 1.80 grant offering is for up to $875,000. Each grant requires a 25 percent match, in dollars or in -kind contributions, which for the k80 corridor grant equals $218,750. The deadline for grant application submittal is June 24, 2016. District Staff had been communicating with the CEC for many years on their electric vehicle related grant making and had lobbied hard for the CEC to earmark funds for the non -metro areas of California. Although the CEC took this request to heart, District Staff had been expecting funds to be dedicated to Truckee and, instead, the funds were dedicated to the entire 1-80 corridor between Auburn and the Nevada State line. Furthermore, award of the grant will go to the most advantageous proposal that covers the entire corridor which is a major advantage to the private charging networks (NRG/EVGO, ChargePoint, etc.) and a major disadvantage to the public power community and local governments. This was evidenced in the CEC's previous DC Fast Charging grant which also earmarked funds for 12 specific segments of the I-5 corridor and which the CEC awarded all 12 segments to private charging networks. The public power community, along with other local governments, has been very vocal with our displeasure to the CEC for releasing grants that favor private charging networks over public power and local governments. This is an issue of local control, the ability to set rates and reliability standards, and the ability to reinvest the charging revenues - including future revenues from California's Low Carbon Fuel Standard Market (LCFS) - back into our communities. Furthermore, the District's public power partners from the State's metropolitan areas - Sacramento Municipal Utilities District, Silicon Valley Power, Palo Alto Electric, Los Angeles Department of Water and Power, Burbank Electric, and Southern California Public Power Authority - have all received electric vehicle charging grants from the CEC and all have performed well. Finally, the California Public Utilities Commission (CPUC) has already approved electric vehicle charging station rate cases for San Diego Gas and Electric and Southern California Edison totaling ~$100 Million and Pacific Gas and Electric has asked for more than $500 Million for electric vehicle charging. Clearly, the State of California has identified electric utilities as key partners to help grow the electric vehicle public access charging market and these recent CEC grants are going in the other direction. District Staff has identified public partners along the I-80 corridor to form a public coalition to apply for the grant. The City of Auburn and the City of Colfax have agreed to own the charging stations in their communities and Placer County Air Pollution Control District (PCAPCD) is providing staff capacity and some direct funds to help Auburn and Colfax with the grant application and with the 25% match for their portion of the proposed project. The District and our public partners are interested in collaborating on the grant application and we believe that a grant application with chargers in Auburn, Colfax, Soda Springs/Norden, and in Truckee would be very competitive. The group has met multiple times and are proposing the following allocation of chargers along the defined I.80 corridor (note: each set includes a DC Fast Charger and a Level 2 Charger): 2 sites in Auburn with 1 set each (Old Town and New Town), 1 site in Colfax with 1 set (shopping center near 1.80 exit), 1 site at Soda Springs/Norden with 1 set (Donner Summit Lodge, just off highway near gas station, owned by Sugar Bowl Ski Resort), and 1 site in Truckee with 2 sets of chargers (in Holliday Developments Railyard )roject). The District was prepared to be the lead applicant on the CEC grant and already had a grant consultant on contract who has successfully secured these grants in the past for public power. The District was already planning to own the charging stations in Truckee and, with the Cities of Auburn and Colfax willing to own the charging stations on the West -slope, the only remaining site was the one on Donner Summit. Given that there is no incorporated cities, nor a local government willing to own the station, the District is proposing to own the charging stations at the Donner Summit lodge. The District plans to operate/maintain the charging stations in Truckee as part of our in -kind contribution to the 25% match requirement; while the sites on the Summit, Colfax, and Auburn will be operated/maintained under a 3rd-party contract. The District has issued a Request for Information from potential electric vehicle charging station vendors for the equipment, back -office services, and on -going maintenance. Charging station end -users will pay a fee similar to that developed for the District's current charging stations. To proceed with the grant application, a Letter of Intent (LOI) has been developed to establish the scope of the project and the expectations for the participating local agencies (District, Placer County APCD, City of Auburn, City of Colfax). The LOI is Attachment 1. Should the District be successful in winning the grant, the District would need to enter into a Grant Agreement with the CEC and would distribute the funds through a formal Memorandum of Understanding (MOU) between the District and the City of Auburn and City of Colfax. Both the Grant Agreement and the MOU would be brought before the Board for approval. The District would also eventually enter into Lease Agreements with Holliday Development and Sugarbowl Ski Resort. CEC award of this grant is expected this year in the late Summer, early Fall time - frame. Acceptance of the grant, requiring District Board approval, would occur later in the year with construction starting as soon as mid-2017. The grant requires operation of the charging stations for a minimum of 5 years and does cover some of the on- going costs. District Staff are in the process of developing budgetary estimates for the Truckee and Norden/Soda Springs sites which include equipment, installation, operations & maintenance, and Staff resources from acceptance of grant onward. 4. FISCAL IMPACT The direct cost for the District's grant consultant contract is for an amount not to exceed $10,000. If successful, the District's portion of the CEC grant is estimated to be $437,500. The 25% match requirement, in -kind plus direct funds, would be less than $110,000. Future revenues from charging station end -users and California's LCFS market are not yet fully known but are expected to fully cover on -going operating expenses not covered by the CEC. Sufficient funds exist in the approved FY16 and FY17 budget for this project. 5. RECOMMENDATION Authorize the General Manager to execute the Letter of Intent with Placer County Air Pollution Control District, City of Auburn, and City of Colfax to pursue CEC grant funding opportunity, GFO-15-603 for "DC Fast Chargers for California's Interregional Corridors". -% ' lam` / / Steven Poncelet Michael D. Holley Public Information & Conservation Manager General Manager NON -BINDING LETTER OF INTENT This Non -Binding Letter of Intent is entered into on April , 2016, by and between the Truckee -Donner Public Utility District, a California local public agency ("TDPUD"), the City of Auburn, a California municipal corporation ("Auburn"), the City of Colfax, a California municipal corporation ("Colfax"), and the Placer County Air Pollution Control District, a California special district ("PCAPCD"). TDPUD, Auburn, Colfax and PCAPCD may be referred to herein individually as "Party", or collectively as the "Parties", as the context requires. I. Non -Binding This Non -Binding Letter of Intent is intended solely as a basis for further discussion between the Parties and is not intended to be and does not constitute a legally binding agreement. Accordingly, this Letter of Intent creates no obligation for any Party to enter into a future agreement and shall not confer on any Parry any rights or remedies. The Parties will only be obligated if they approve, execute and deliver a future definitive agreement. Each Party shall pay and be responsible for its own fees, costs and expenses with respect to this Letter of Intent and the preparations and negotiations for the future definitive agreement. The Parties may ultimately reach a formal agreement to cooperate in securing a grant and implementing that grant. If the Parties reach an agreement for the purposes set forth in this Letter A Intent, the terms of that agreement shall control even if they conflict with any term in this Letter of Intent. II. The Grant The Parties hereby express their intent to work collaboratively to obtain a grant from the California Energy Commission ("CEC") through its Alternative and Renewable Fuel and Vehicle Technology Program, GFO-15-603 DC Fast Chargers for California's Interregional Corridors, for the maximum award amount of $875,000 for the I-80: Auburn to West of Nevada corridor ("Grant"). The Parties intend to use the Grant to install and operate five direct current (DC) fast charging stations and to fund the administration of and compliance with the terms and conditions of the Grant. The Parties acknowledge that the application for the Grant ("Grant Application") must be submitted to the CEC no later than June 24, 2016. The Parties intend that the Grant will fund: (1) Two DC charging stations in Auburn, each station consisting essentially of one DC fast charger and one Leve12 charger, that will be installed and operated by Auburn; (2) One DC charging station in Colfax, consisting essentially of one DC fast charger and one Level 2 charger, that will be installed and operated by Colfax; (3) One DC charging station in the Donner Summit area, consisting essentially of one DC fast charger and one Level 2 charger, that will be installed and operated by TDPUD; and (4) One DC charging station in Truckee, consisting essentially of two DC fast chargers and two Level 2 chargers, that will be installed and operated by TDPUD. III. Commitment of the Parties Each of the Parties commits to work collaboratively with each other with the mutual goal of obtaining the Grant. Toward that end and as is set forth in more detail below, each of the Parties {00587158.00cx 111 163603.1 will seek all necessary approvals from their governing bodies to support the Grant, supply all information needed for the Grant Application and negotiate with each other a definitive agreement setting forth the rights and obligations of each of the Parties for use of the Grant if they are awarded the Grant. A. Commitment of TDPUD TDPUD commits to perform the following: 1. Act as the lead agency with respect to the Grant. It will gather all of the required information from the Parties, prepare and submit the Grant Application. TDPUD may also be referred to herein as "Applicant" or "Grant Lead". 2. At is sole cost and expense, will engage and pay a consultant to assist it in preparing and submitting the Grant Application. 3. Identify a site in the Donner Summit area and a site in Truckee for the DC charging stations and obtain commitment letters from the owners of the sites expressing their commitment to enter into a lease, license or other suitable agreement to locate the DC charging stations on their property for a minimum of five years. These letters will be submitted with the Grant Application, 4. Prepare a budget that includes the estimated costs to purchase all of the charging equipment for each of the five sites, all of the back office services for all five site and maintenance costs for all five of the sites for five years. 5. Prepare a budget for the site in the Donner Summit area that includes the estimated costs to obtain electric service from PG&E and the site improvements necessary for the DC charging station at the site. 6. Prepare a budget for the site in Truckee that includes the estimated costs to obtain electric service and the site improvements necessary for the DC charging station at the site. 7. Obtain a minimum of three letters from community members supporting the need and desire for a DC charging station in the Donner Summit area. These letters will be submitted with the Grant Application. 8. Obtain a minimum of three letters from community members supporting the need and desire for a DC charging station in Truckee. These letters will be submitted with the Grant Application. 9. Prepare a grant narrative for inclusion in the Grant Application. 10. Commit to provide matching funds as per the Grant, which may include in -kind contributions, equal to 25% of the Grant funds to be used for the DC charging station in the Donner Summit area and in Truckee and for administration of and compliance with the Grant, identify the source of those matching funds, and provide letters of commitment. 11. Prepare a budget for five years that includes the estimated costs to operate the two sites, including administrative and overhead costs, fulfilling the requirements of the Grant to account for and report information regarding the Grant and the sites. 12. Diligently and timely negotiate with the other Parties a definitive agreement setting forth the rights and obligations of each of the Parties for use of the Grant in the event the CEC awards the Grant to TDPUD, such that a definitive {00587158.00cx i }2 163603.1 agreement has been approved and executed by all Parties before the Applicant must enter into an agreement accepting the Grant or otherwise accept the Grant. 13. Take all reasonable actions necessary to support the Grant Application and its timely submission, facilitate acceptance of the Grant, if awarded, and perform all obligations required of it under the Grant, if awarded, including but not limited to, entering in into a lease, license or other suitable agreement for the two DC charging sites, installing, operating and maintaining the two DC charging sites, and fulfilling its obligations under the Grant to account for and report information regarding the two DC charging sites. B. Commitment of Auburn Auburn commits to perform the following: 1. Provide TDPUD with a letter of intent addressed to the CEC expressing its support for the Grant Application and intent to serve as a sub -recipient under the Grant pursuant to which it will install and operate two DC charging stations in Auburn. Auburn may also be referred to herein as "Sub -recipient". 2. Provide TDPUD with a list of the key personnel who will administer the Grant as a sub -recipient, a description of their anticipated work activities associated with the Grant and labor estimates and for such work. 3. Identify two sites in Auburn for the DC charging stations and obtain commitment letters from the owners of the sites expressing their commitment to enter into a lease, license or other suitable agreement to locate the DC charging station on their property for a minimum of five years. These letters will be submitted with the Grant Application. 4. Prepare a budget for each of the sites in Auburn that includes the estimated costs to obtain electric service from PG&E and the site improvements necessary for the DC charging stations at the sites. This budget will be submitted with the Grant Application, 5. Obtain a minimum of three letters from community members supporting the need and desire for a DC charging station at each of the sites in Auburn. Minimum of three letters of support will be required for each site. These letters will be submitted with the Grant Application. 6. Prepare a grant narrative for inclusion in the Grant Application. 7. Commit to provide matching funds as per the Grant, which may include m4ind contributions, equal to 25% of the Grant funds to be used for the each of the DC charging stations in Auburn, identify the source of those matching funds, and provide letters of commitment. 8. Prepare a budget for five years that includes the estimated costs to operate the two sites, including administrative and overhead costs, fulfilling the requirements of the Grant to account for and report information regarding the Grant and the sites. This budget will be submitted with the Grant Application, 9. Diligently and timely negotiate with the other Parties a definitive agreement setting forth the rights and obligations of each of the Parties for use of the Grant in the event the CEC awards the Grant to TDPUD, such that a definitive 100587158 .00cx i }3 �rxrl�x�� agreement has been approved and executed by all Parties before the Applicant must enter into an agreement accepting the Grant or otherwise accept the Grant. 10. Take all reasonable actions necessary to support the Grant Application and its timely submission, facilitate acceptance of the Grant, if awarded, and perform all obligations required of it under the Grant, if awarded, including but not limited to, entering in into a lease, license or other suitable agreement for the two DC charging sites, installing, operating and maintaining the two DC charging sites, and fulfilling its obligations under the Grant to account for and report information regarding the two DC charging sites. C. Commitment of Colfax Colfax commits to perform the following: 1. Provide TDPUD with a letter of intent addressed to the CEC expressing its support for the Grant Application and intent to serve as a sub -recipient under the Grant pursuant to which it will install and operate one DC charging station in Colfax. Colfax may also be referred to herein as "Sub -recipient". 2. Provide TDPUD with a list of the key personnel who will administer the Grant as a sub -recipient, a description of their anticipated work activities associated with the Grant and labor estimates and for such work. 3. Identify a site in Colfax for the DC charging station and obtain commitment letters from the owner of the site expressing its commitment to enter into a lease, license or other suitable agreement to locate the DC charging station on its property for a minimum of five years. These letters will be submitted with the Grant Application. 4. Prepare a budget for the site in Colfax that includes the estimated costs to obtain electric service from PG&E and the site improvements necessary for the DC charging station at the site. This budget will be submitted with the Grant Application. 5. Obtain a minimum of three letters from community members supporting the need and desire for a DC charging station at the site in Colfax. These letters will be submitted with the Grant Application. 6. Prepare a grant narrative for inclusion in the Grant Application. 7. Commit to provide matching funds as per the Grant, which may include in -kind contributions, equal to 25% of the Grant funds to be used for the DC charging station in Colfax, identify the source of those matching funds, and provide letters of commitment. 8. Prepare a budget for five years that includes the estimated costs to operate the site, including administrative and overhead costs, fulfilling the requirements of the Grant to account for and report information regarding the Grant and the site. This budget will be submitted with the Grant Application. 9. Diligently and timely negotiate with the other Parties a definitive agreement setting forth the rights and obligations of each of the Parties for use of the Grant in the event the CEC awards the Grant, such that a definitive agreement has 100587158 .00cx i }4 163603.1 been approved and executed by all Parties before the Applicant must enter into an agreement accepting the Grant or otherwise accept the Grant. 10. Take all reasonable actions necessary to support the Grant Application and its timely submission, facilitate acceptance of the Grant, if awarded, and perform all obligations required of it under the Grant, if awarded, including but not limited to, entering in into a lease, license or other suitable agreement for the one DC charging site, installing, operating and maintaining the one DC charging site, and fulfilling its obligations under the Grant to account for and report information regarding the DC charging site. D. Commitment of PCAPCD PCAPCD commits to perform the following: 1. Provide TDPUD with a letter of intent addressed to the CEC expressing its support for the Grant Application and intent to provide financial support, which may include in -kind contributions, to TDPUD, Auburn and/or Colfax for charger sites that they will own and operate that are located in Placer County in order to assist them in meeting their obligations to provide 25% matching funds under the Grant. PCAPCD may also be referred to herein as "Partner". 2. Prepare a grant narrative for inclusion in the Grant Application. 3. Provide TDPUD with a list of the key personnel who will administer the Grant as a Partner, a description of their anticipated work activities associated with the Grant and labor estimates and for such work. 4. Prepare a budget for five years that includes the estimated costs to assist Recipient in administering the Grant, including administrative and overhead costs, fulfilling the requirements of the Grant to account for and report information regarding the Grant for sites owned and operated by Auburn and Colfax as sub -recipients located in Placer County. This budget will be submitted with the Grant Application. 5. Commit to provide financial support as per the Grant, which may include in - kind contributions, to TDPUD, Auburn and/or Colfax in order to assist them in meeting their obligations to provide 25% matching funds under the Grant for charger sites that they will own and operate that are located in Placer County, 6. Diligently and timely negotiate with the other Parties a definitive agreement setting forth the rights and obligations of each of the Parties for use of the Grant in the event the CEC awards the Grant, such that a definitive agreement has been approved and executed by all Parties before the Applicant must enter into an agreement accepting the Grant or otherwise accept the Grant. Take all reasonable actions necessary to support the Grant Application and its timely submission, facilitate acceptance of the Grant, if awarded, perform all obligations required of it under the Grant, if awarded, and provide the financial support, which may include in -kind contributions, to TDPUD, Auburn and/or Colfax to help them meet their 25% matching funds required by the Grant for charger sites that they will own and operate that are located in Placer County. {ooss�iss.�ocx i }5 163603.1 This Non -Binding Letter of Intent may be executed by the Parties in counterpart originals with the same force and effect as if fully and simultaneously executed as a single, original document. It . Truckee -Donner Public Utility District Date City of Auburn By: By: Its: Its: Date Date City of Colfax Placer County Air Pollution Control District By: By: Its: Its: {00587158.DOCX 1 }6 163603. I