Report to Mayor and City Council
Tuesday, May 03, 2022
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF CONCEPTUAL SITE PLANS, CHARGE READY CHARGING INFRASTRUCTURE AND REBATE PARTICIPATION AGREEMENTS WITH SOUTHERN CALIFORNIA EDISON FOR NO-COST INSTALLATION OF UTILITY SIDE AND CUSTOMER-SIDE MAKE READY INFRASTRUCTURE AT ELEVEN CITY-OWNED SITES, GRANTS OF EASEMENT FOR ELECTRICAL EQUIPMENT, AND ASSIGNMENT AGREEMENTS TO ASSIGN THE PARTICIPATION AGREEMENTS TO A THIRD-PARTY AFTER THE ELECTRIC VEHICLE CHARGING EQUIPMENT IS INSTALLED AND ENERGIZED
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I. SUMMARY
The proposed project includes “make ready” infrastructure for 128 Level 2 charging ports, with 20 single-port chargers and 54 dual-port electric vehicle (EV) chargers. The conceptual plans provided by SCE (Exhibit Nos. 1-11) include transformers, switchgear, above- and below ground conduits, and other associated work at each site. Acquisition, installation, and maintenance of the EV chargers is not covered under the Charge Ready Program and will be treated as a separate project by City staff.
The California Public Utilities Commission (CPUC) issued a decision on September 2, 2020 approving Southern California Edison’s (SCE) Charge Ready Program. The decision approved the 4-year program and $436 million in funding, comprised of approximately $417.5 million for charging infrastructure, $14.5 million for marketing, education, and outreach, and $4.3 million for an evaluation of the Charge Ready infrastructure and market education programs.
The Charge Ready Infrastructure Program was designed to help expand the availability of charging infrastructure and to support California’s goal of attaining a 40 percent reduction of greenhouse gas emissions from 1990 levels by 2030 and an 80 percent reduction by 2050, by providing funding for the addition of up to 37,800 EV charging ports in SCE’s service territory.
Under the program, SCE performs infrastructure work on the utility side and specific work on the customer side of the meter at no cost. Such work includes electrical design, permitting, construction and installation of electrical equipment such as transformers, switchgear, meters, cabinets and underground conduits, and conductors. The applicant is responsible for procuring, installing, and maintaining the EV charging equipment for a period of 10 years.
There is also a program requirement that the charging equipment includes a network service, and that the usage, pricing and other related information will be shared with SCE. The site owner, the City in this case, is also required to grant an easement to SCE (Exhibit No. 12) at each location where their infrastructure is installed.
During the contract term, SCE owns and maintains the electrical equipment they install through the Charge Ready Program to ensure it remains in good working condition.
In addition to covering the infrastructure costs, the Charge Ready Program will provide a rebate for the charging stations, up to a certain dollar amount, based upon the charging type and location. The rebate for the 128 ports that are planned at this time is estimated to be $310,300 which will be assigned to the City’s selected vendor after the charging equipment is installed and energized.
All references in this report to “participant” refer to the City of Carson where contextually appropriate.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the conceptual site plans for eleven City-owned sites.
2. APPROVE and AUTHORIZE the City Manager to execute eleven Charge Ready Charging and Rebate Participation Agreements with Southern California Edison (SCE) which will authorize SCE to prepare the designs and construct the make ready infrastructure for 128 level-2 charging ports across eleven city-owned sites.
3. APPROVE and AUTHORIZE the City Manager to negotiate, grant, and execute the eleven Grants of Easement necessary to participate in the SCE Charge Ready Program, subject to SCE’s finalization of the exhibits and legal descriptions and approval as to form by the City Attorney.
4. APPROVE and AUTHORIZE the City Manager to negotiate and execute the eleven assignment agreements to assign the Charge Ready Charging and Rebate Participation Agreements to the City’s selected vendor after the electric vehicle charging equipment is installed and energized, subject to SCE updating the agreements per City Attorney request and approval as to form by the City Attorney.
5. AUTHORIZE staff to submit the associated SCE rebate applications and designate the City’s selected vendor as the recipient of the rebates after the electric vehicle charging equipment is installed and energized.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate, consistent with the requirements of the law.
IV. BACKGROUND
The City’s public infrastructure for EV charging is inadequate to meet the growing needs of the City’s fleet and private vehicles. To increase the number of EV chargers, staff has applied to SCE’s Charge Ready Program to receive no-cost electrical infrastructure for new EV charging stations. As a requirement of the program, the City must select a network provider and EV charger from SCE’s approved lists. Staff issued an RFP for this work and the results and staff recommendations will be presented to the City Council in a separate staff report.
Project Description - The proposed project includes “make ready” infrastructure for 128 Level 2 charging ports. The locations and port count per site are shown below in Table 1. The program is only funding Level 1 and Level 2 charging currently. DC Fast Charging (DCFC) is still pending CPUC approval and is not currently available. The program guidelines define Level 1 (L1) and Level 2 (L2) as follows:
L1 charging - Low power charging up to 1.9kW, typically at or below 120 volts. An EV with a 60 kWh battery pack will take approximately 20 hours to charge from empty to full.
L2 charging - medium power charging up to 7.2kW, typically delivered between 220 and 240 volts. An EV with a 60 kWh battery pack will take approximately 8 hours to charge from empty to full.
Details about the proposed L2 chargers will be presented to the City Council for review and consideration in a separate staff report.
How the Program Works - The Charge Ready Charging Infrastructure and Rebate program provides the necessary infrastructure to support the installation of EV charging infrastructure at low- to no-cost. The program also provides rebates for the purchase and installation of the charging equipment. SCE is responsible for designing and installing the supporting infrastructure, and participants are responsible for the selection, purchase, and installation of the charging equipment.
The Charge Ready program offers two program options for public agencies. These include:
1) Charging Infrastructure and Rebate. In addition to SCE providing the utility-side and customer-side of the meter supporting infrastructure, this option also offers eligible participants a rebate to offset the costs associated with the purchase and installation of SCE-approved charging equipment. The amount of the rebate will depend on the power level of the charging equipment selected, and the designation of the site where it will be installed. Participating sites located in a top quartile disadvantage community (DAC) will qualify for the largest rebate, with lower rebates offered to non-DAC multi-family property sites and other non-residential entities. This is the option that was selected for the 128 charging ports proposed as part of this staff report.
2) The Customer-Side Make-Ready Rebate Option. This rebate option is available to any participant who chooses to design, purchase, and install the customer-side of the meter infrastructure work. The Customer- Side Make-Ready Rebate is intended to offset up to 80 percent of the costs that SCE would otherwise incur for performing the work. This option will be considered, if determined viable, to install EV charging infrastructure at City Hall, Community Center, Mills Park, and Foisia Park since they were not good candidates for Option 1, and will be presented to the City Council for consideration during a future Council meeting.
More details about the program can be found here: <https://www.sce.com/evbusiness/chargeready/public>
Charge Ready Program Requirements - Important participation requirements include, (1) All EV charging equipment must be selected from SCE’s Approved Product List; (2) Program participant must purchase, install, own, and operate the charging equipment; (3) Program participant is required to operate and maintain the charging equipment in good working order for a minimum of 10 years; (4) Program participant is required to contract with a qualified network services provider to ensure devices have active network communications; (5) Program participant is required to make port level usage and other data available to SCE; (6) Program participant is required to authorize SCE to share port level, charging episode, meter usage and other charging equipment related data to third parties (such as program evaluators and the CPUC); (7) All charging equipment must be metered separately using an Edison SmartConnect meter or other SCE approved meter dedicated to registering the usage to participate in this program; (8) Program participant will be required to have the meter serving the charging equipment enroll on a Time-of-Use (TOU) rate plan; (9) Program participant must enroll in at least one qualifying Demand Response (DR) program; (10) Program participant is responsible for paying all electricity charges associated with the charging equipment; (11) Program participant will set the pricing associated with driver’s use of the charging equipment; (12) Program participant is responsible for any charging equipment and related installation costs exceeding available rebates; (13) Program participants are encouraged to maximize accessibility to the charging stations; and (14) Program participant is required to ensure compliance with all other program requirements.
Easements - A sample grant easement is provided as an exhibit. The easement allows for SCE to construct, maintain, operate, and repair any SCE-installed infrastructure on City property (in the easement area). SCE will prepare the legal description and exhibits based on the final design. The City will be required to execute and notarize easements for each site within 30 calendar days from the date of receipt. Once received, SCE will have the executed easement recorded and filed. SCE cannot move forward with any further construction-related activities until the necessary easements have been granted. Once final easements have been granted, SCE will initiate the plan check and permitting process. Other noteworthy terms of the easement are as follows:
If the charging stations are removed and removal is not part of a relocation of the equipment, with 60 days written notice, City may terminate the easement. Also, upon City’s request, SCE must relocate its facilities installed to another mutually approved area within City’s property provided that SCE has first been given an easement over such new area on terms identical to those set forth in the easement. Such relocation shall be at City’s sole cost and expense, and upon completion of the relocation, SCE will execute a quitclaim of the vacated easement on terms reasonably acceptable to both parties.
The City Council is being asked to approve all eleven grants of easement now, subject to City Attorney approval as to form, with the understanding that SCE will prepare the legal description and exhibits based on the final designs.
Program Participation Agreement - The Charge Ready Charging and Rebate Participation Agreement is a standard agreement provided to all Charge Ready applicants whose projects are approved for implementation. The terms and conditions of the agreement were developed by SCE and are regulated by the California Public Utilities Commission. Any requested changes would have to go through a series of steps and are unlikely to be considered from individual applicants. There are several significant provisions in the agreement that the City Council should be aware of:
The Program participant is required to purchase and install the quantity and power level of approved Charging Ports and maintain all charging equipment in good working order. The term of the agreement is 10 years from the date the charging equipment is in service. The City will receive a rebate for the purchase and installation of the charging equipment up to City’s total cost for procurement and installation of the equipment. City must also enter into a contract with a qualified electric vehicle charging equipment Network Service Provider approved by SCE to record and transmit EV charging usage and other data to SCE. City will also be required to indemnify SCE for any liability arising from City’s breach of the agreement or City’s acts or omissions in carrying out the agreement. It is possible for the agreement to be terminated by either City or SCE under certain circumstances described in Section 9 of the agreement. If the agreement is terminated for certain reasons, for example, such as if City removes the equipment without replacing it, the City would be required to pay (a) all costs actually incurred, or committed to be incurred, by SCE, as of the termination date, in connection with designing and deploying the infrastructure at the site; and (b) the rebate payment (if already paid). If the Charging Equipment or the Make-Ready Infrastructure, if applicable, are installed, the amount due to SCE for both (a) and (b) above will be prorated over a ten-year period, beginning from the In-Service Date of the Charging Equipment.
The City Council is being asked to approve all eleven Charge Ready Charging and Rebate Participation Agreements (Exhibit Nos. 1-11).
Implementation - If the City Council approves and authorizes the City Manager to execute the participation agreements with SCE, the City’s projects will shift to the formal design phase. At that point, SCE’s design consultants will develop the permit package to be submitted to the Engineering and Building and Safety Departments for review. Once the project is permitted and approved, SCE’s contractor will perform all the construction related activities. SCE’s anticipated timeline for completion is 6 months from execution of the Agreement.
Meter and TOU Rate Plan Options - Once SCE’s make-ready construction is complete and approved, City staff will work with the assigned SCE account manager to select a TOU rate plan, request service turn-on, and establish a new SCE service account for each location for the full 10-year term of service. All TOU plans feature energy charges that vary based on the time of day, the day of the week, and the season. The City will be responsible for paying all EV charging station energy costs, however, revenues from EV users are anticipated to offset the costs. A reimbursement arrangement is also being considered with a third-party vendor for non-workplace charging locations. More details about the reimbursement arrangement will be provided in a separate staff report but in sum, City will be reimbursed by the vendor for monies collected by vendor associated with use of the charging stations by the public that are paid by the City.
Assignment of the Participation Agreement; Rebate Assignment - The charging equipment rebate amount based on 128 ports is estimated to be $310,300. The rebate payment will be processed by SCE after final review of the required documentation and verification of the operational status of the charging equipment. Once rebates are processed, City staff will assign rights to the rebate to the City’s approved third-party vendor as the payee in return for a lower price on the equipment. The City will also assign the Charge Ready Charging and Rebate Participation Agreement to the third-party vendor and the third-party vendor will assume the obligations contained therein as well. More details about the third-party vendor will be provided in a separate staff report.
The City Council is being asked to approve all eleven assignment agreements now (Exhibit No. 13), subject to City Attorney approval as to form, with the understanding that SCE legal counsel is currently in the process of making certain minor revisions after the City Attorney’s Office and the third-party vendor requested changes to the form of agreement. The requested changes are not substantive in nature but rather, are necessary edits to accurately reflect the program as applied to the City.
Third-Party Vendor - This staff report details that the acquisition, installation, and maintenance of the EV chargers is not covered under the Charge Ready Program. So, in conjunction with the City’s Charge Ready applications, the City issued a Request for Proposals (RFP) seeking an experienced vendor that can provide turnkey electric vehicle charging station solutions at low or no cost to the City. The results of the RFP and staff’s recommendations will be shared with the City Council in a separate staff report, and will show that staff has recommended a vendor who has offered a no cost option. The separate staff report will also provide details about the RFP process, Electric Vehicle Infrastructure Training Program (EVITP) requirements, term, proposed L2 charger and functionality, revenues, network capabilities, system ownership, timeline, maintenance, warranty, and other important issues.
V. FISCAL IMPACT
There is no cost to Charge Ready Program participants for the SCE-designed and installed infrastructure work. There is a cost associated with the City’s obligation to acquire a quantity of charging equipment equivalent to the number of charging ports supported by SCE’s make ready infrastructure during the 10-year Agreement term, however, it is anticipated that that cost will be borne by the City’s selected third-party vendor in exchange for low carbon fuel standard (LCFS) credits and the SCE rebate.
The City’s proposed Charge Ready Program project is eligible for SCE’s Charging Equipment Rebate, which ranges between $725 to $2,900 per port to cover hardware costs. The EV Charger rebate is estimated to be $310,300 and will be issued by SCE after the equipment is installed and energized. The rebate will be assigned to the City’s selected third-party vendor to offset their costs to procure and install the electric vehicle charging equipment.
VI. EXHIBITS
1. Veterans Park - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 10 - 28)
2. Dominguez Park - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 29 - 47)
3. Anderson Park - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 48 - 66)
4. Corporate Yard 1 - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 67 - 85)
5. Corporate Yard 2 - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 86 - 104)
6. Carriage Crest Park - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 105 - 123)
7. Carson Park - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 124 - 144)
8. Dolphin Park - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 145 - 165)
9. Stevenson Park - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 166 - 186)
10. Hemingway Park - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan. (Pgs. 187 - 207)
11. Hemingway Aquatic Center - Charge Ready Charging Infrastructure and Rebate Participation Agreement and Site Plan (Pgs. 208 - 226)
12. Sample Grant Easement. (Pgs. 227 - 229)
13. Sample Assignment Agreement. (Pgs. 230 - 235)
Prepared by: Reata Kulcsar, Sustainability Administrator - Utilities, & Gilbert Marquez, P.E., City Engineer