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HomeMy WebLinkAbout16 EV Charger Rabate Program� w ACTION To: Board of Directors From: Steven Poncelet Date: June 06, 2018 Subject: Consideration of the Sale of California Low Carbon Fuel Standard (LCFS) Credits and Applying Revenue to New EV Charger Rebate Program 1. WHY THIS MATTER IS BEFORE THE BOARD The Board authorized staff to enter the District into the California Low Carbon Fuel Standard (LSCF) program starting in 2017. Board approval is being requested to sell the LCFS credits generated in 2017 and to apply the revenue to a new District Residential Level 2 EV Charger Rebate Program. 2. HISTORY The LCFS is a California regulation designed to reduce Greenhouse Gas (GHG) emissions associated with the life cycle of transportation fuels including electricity for Electric Vehicles (EV's). The California Air Resources Board (CARB) adopted the LCFS in 2009 and adopted amendments in 2011 and re -adopted in 2015. The District is eligible to receive LCFS credits for: each EV registered with the California Department of Motor Vehicles (DMV) in the District's service territory; from the usage of the District's public access EV charging stations at the Train Depot, Pioneer Commerce Center, and Meadow Park; and from electric forklifts used in the District's service territory. LCFS credits can then be sold into the market to generate revenues which, by statute, must be re -invested locally by the District in activities that support the adoption of EV's. DMV registrations currently generate approximately 2.5 LCFS credits per year (approx. $250 per EV) and the District's public access EV charging stations generate approx. $0.08/kWh at today's market price. Electric forklift credits are assigned by CARB. The Board, at the March 1, 2017 District Board meeting, directed the General Manager to register and establish an account with CARB's Low Carbon Fuel Standard Reporting Tool Credit Bank & Transfer System. Taking this step allowed the District to start generating LCFS credits and provides the mechanism to sell credits into the LCFS market. Since joining the LCFS program early 2017, District staff have been learning how to most effectively meet the LCFS regulatory and reporting requirements and how best to sell LCFS credits. The District also continues to promote the adoption of EV's and the use of the District's public access EV charging stations through the Truckee is EV Friendly campaign and other efforts. 3. NEW INFORMATION The District has received the LCSF credits generated during 2017 and may now consider selling them to generate revenue to support the District's EV programs. The estimated value to the District's 2017 LCFS credits is $20,000. Staff is proposing that the District sell these credits now and use the proceeds to fund a new TDPUD Residential Level 2 EV Charger Rebate Program for our electric customers. Staff is further proposing that the Board authorize in subsequent years to sell the most recent year's LCFS credits to provide an on -going funding stream for this new rebate program. Staff does expect the District's LCFS revenues to grow over time and anticipates bringing back modified or new programs in the future to invest LCFS funds to serve our customer's EV needs. The proposed TDPUD Residential Level 2 EV Charger Rebate Program is similar to the many existing residential EV charger programs being offered by our sister Public - Owned Utilities (POU's) such as Santa Clara, Palo Alto, Redding, Roseville, SMUD, and Burbank to name a few. The rebate level is up to $500 for installing a Level 2 (220-240 VAC) EV Charger at the residential property in the District's service territory where an EV has been registered with DMV. A draft description of the Residential Level 2 EV Charger Rebate Program is included as Attachment 1. The District would administer this new rebate leveraging the existing systems used for the District's water/energy conservation and customer engagement programs. The District would limit the amount of rebates each year to the revenue generated by the previous year's sale of LCFS credits so that there would no rate impacts to the District's customers from this new rebate program. 4. FISCAL IMPACT The proceeds generated from the of the new TDPUD Residential L potential for the sales of LCSF cr District to invest in EV programs unknown at this time. District's sale of LCFS credits would fund the costs �vel 2 EV Charger Rebate Program. There is the edits to create an additional revenue stream for the but the magnitude of these additional revenues is 5. RECOMMENDATION Authorize the General Manager to sell the District's 2017 LCFS credits and apply the proceeds to fund a new TDPUD Residential Level 2 EV Charger Rebate Program. Steven Poncelet Public Information &Strategic Affairs Directo Michael D. Holley General Manager Attachment 1 TDPUD Residential Level 2 EV Charger Rebate Program June 6, 2018 Overview: The TDPUD has been tracking the emergence of Electric Vehicles (EV's) and their impacts TDPUD's overall electric load and distribution system. The TDPUD entered the California Low Carbon Fuel Standard Market (LCFS) in 2017 and is now receiving LCFS credits created by the registration of EV's with California DMV in the TDPUD's service territory, the TDPUD's public access EV charging stations, and electric forklifts in the TDPUD's service territory. These credits are now available to sell and will create a stream of annual revenues to fund the Residential EV Charger Rebate Program. Program Rules: 1. Must be an active TDPUD electric residential customer 2. The EV must be registered with California DMV in the TDPUD's service territory. Customer must submit proof of CA DMV registration showing the address in the TDPUD service territory. 3. The EV charger must be Level 2 (220-240 VAC, minimum 10 amps) and utilize the SAE J1772 charging plug or Testa's High Power Wall Connector and be UL or equivalent listed. Level 1 chargers (110 VAC) do not qualify. 4. The EV charger must be a new purchase with installation hardwired to the property's electric service. (EV chargers with a plug that can be removed do not qualify). 5. Rebate amount is up to $500 and covers the purchase of the Level 2 EV charger, materials for installation, and labor to install by a licensed professional. 6. Customer must provide Purchase receipts for the Level 2 EV charger and any materials for installation must be submitted. Invoices for installation must be from a licensed professional only. 7. Customer must provide proof of installation in the form of a dated receipt for installation from a licensed professional or a picture of the final installation. If requested, customer must agree to allow verification of installation by an authorized District representative. 8. If requested, customer must provide District with EV charger utilization data, and will assign all California Low Carbon Fuel Standard (LCFS) or successor program credits to Truckee Donner Public Utility District. 9. Installation of the charger must comply with applicable permitting requirements and the contractor used to perform the work holds the appropriate license. 10. Rebate application, to qualify, must be submitted within 90 days of installation of the Level 2 EV charger and are accepted on a first -come, first serve basis and subject to availability of funds for the program. 11. Only one rebate per residential account. 12. The EV must be DOT approved for highway application. Golf carts, neighborhood carts, motorcycles, electric scooters or bicycles, and other low -speed vehicles are not eligible.