4

City of Palo Alto

Report Type: Consent Calendar

(ID # 2360)

City Council Staff Report

Meeting Date: 12/19/2011

Summary Title: Electric Vehicle Infrastructure Policy Title: Recommendation From the Policy and Services Committee to Adopt an Electric Vehicle Infrastructure Policy From: City Manager Lead Department: City Manager
RECOMMENDATION Staff and Policy and Services Committee recommend that the City Council adopt the Electric Vehicle Infrastructure Policy as discussed in this report and summarized in Appendix C. Staff brought this issue and report to the Policy and Services Committee on October 18th and they unanimously approved the proposed policy, although requested that Staff strike project #2, related to developing a standard for curbside charging, and to address the aesthetic issue, as part of the programs development. Executive Summary Several factors are driving the need for the City of Palo Alto (or City) to develop an electric vehicle (EV)related policy. Rapid changes are occurring in the electric vehicle industry, including: new models of cars, new standards for EV chargers, and federal and state subsidies available for EV-related projects that are helping to influence the rate of EV adoption and infrastructure development. The City of Palo Alto recognizes EVs as an important part of the solution for reaching its greenhouse gas emission reduction goal, and so has an interest in encouraging the use of EVs throughout the community. Progressive, early adopter residents and commuters are moving forward with EV purchases now. The City can further its sustainability goals by positioning itself to support these emerging technologies. As a result, the City of Palo Alto will be a leader in adopting a set of policies supporting EV infrastructure and EV adoption. Staff is aware of only a few cities or regions that have adopted something similar. The City of Berkeley adopted a policy focusing on residential EV parking in May of 2011.i The Puget Sound Regional Council has also adopted an ordinance similar to the proposed policies listed in this staff report.ii The City is participating with several regional agencies and groups promoting EVs to collectively learn how best to promote EVs in the region. Background Key Drivers Projected Demand There are many early adopters in Palo Alto who own EVs or expect to own them in the near future. In addition, staff estimates that Palo Alto already has a number of older EVs in town. An initial assessment by the Utilities Department based on a state-wide California Energy Commission (CEC) estimate, projects December 19, 2011 (ID # 2360) Page 1 of 9
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that Palo Alto may have 3,000 to 10,000 residential and commute cars charging in the city by 2020, and that such charging will increase electrical energy consumption in the city by 1% to 2%. Climate Protection Plan Widespread adoption of EVs and greening of the Citys electric supply will assist the community to achieve its green house gas (GHG) emission reduction goal of reducing 2020 emissions by 15% below the 2005 baseline. In 2005, the total community-wide CO2 emissions were 728,720 metric tons. Of that, the automobile-based commute to, from, and within the city is estimated to have generated 266,000 metric tons, making up 32% of the community-wide GHG emissions for that year. Every fossil fueled car that switches to EV charging is estimated to reduce GHG emissions by approximately 3.5 tons/year.iii Assuming Palo Alto will have between 3,000 to 10,000 EVs by 2020, the communitys commute emissions could be reduced by 4 to 13% and community overall emissions could be reduced by 1.5% to 5%. Industry Advancements A new generation of EVs is being introduced by major auto manufacturers in the U.S. In addition, several EV charging station manufacturers are coming to market with various business models. All are vying for market share in this emerging technology sector. Palo Alto Public Charging Infrastructure Five new EV chargers have been installed in downtown Palo Alto through the federal governments ChargePoint America grant with Coulomb Technologies. This equipment grant is valued at $20,000. The installation cost of $20,000 was funded by the Utilities Department, while the cost of electricity supply and maintenance will be the responsibility of Public Works/Facilities. The new charging station facilities are identified in Figure 1. Figure 1 - Downtown Palo Alto Electric Vehicle Charging Station Facilities

December 19, 2011 (ID # 2360)

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Since July, on average four cars have been charging on each of the two City Hall chargers every day. The electricity dispensed at the two City Hall chargers to these EVs would effectively assist the EV owners reduce greenhouse gas emissions by .75 ton/month or 9 tons per year.iv The cost to the General Fund of providing free electricity at the City Hall charging station is approximately $100/month, since the electricity is currently provided free to users. Additional charging stations will be installed at public facilities as part of capital improvement projects, such as the Main and Mitchell Park Libraries, utilizing Measure N funds. Private sector charging stations that have or will soon be installed include those at Stanford Shopping Center, Creekside Inn, SAP, HP, GM, Advanced Technology Office, and EPRI. The City is also developing public-private partnerships for charging stations through the Planning Entitlement process. Active development projects that are proposing electric vehicle charging stations as public benefit elements include the 101 Lytton Street project with two proposed on-street charging stations. Permits for EV Charger Installation An interdepartmental team is working to ensure a streamlined permit process for the installation of EV Chargers. The team is also working on a communications piece targeted at potential EV owners that describes the process and requirements for installing an EV charger on residential property. The Development Center currently receives about 20 permit applications for EV chargers per month, but this is expected to increase over time. Impact on Electric Distribution System Wide-scale adoption of EVs in the City is likely to have some localized impact on the electric distribution systems. The Utilities Department examined this impact and found, in an assessment to the Utilities Advisory Commission in Sept 2009, that no major upgrades will be required in the distribution system feeders in the early years, but some small-scale, localized distribution transformer upgrades may be December 19, 2011 (ID # 2360) Page 3 of 9
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needed. The City is also part of a research project to evaluate ways of disconnecting EV charging during peak electrical load periods during hot summer days, to minimize the impact on the electric grid. Government Subsidies There are currently a number of funding sources for EV-related projects including federal stimulus money and state agency grants from the California Energy Commission (CEC) and the Bay Area Air Quality Management District (BAAQMD). It is widely believed that this funding will not be available in the long-term, so there is an urgency to complete qualifying projects. The City of Palo Alto applied for and has received two grants totaling $35,000 from BAAQMD and the CEC to install Electric Vehicle (EV) charging infrastructure. Economic Development The City of Palo Alto prides itself on being the green technology hub of Silicon Valley. EV companies such as Tesla and Better Place have their headquarters in Palo Alto. As such there is a strong impetus for Palo Alto to become a leader in EV support and adoption. Green technologies such as EVs are an important part of the City of Palo Alto brand and the growth of these technologies supports the Citys economic development objectives. Discussion The policy in Attachment C describes general electric vehicle use considerations and goals in the City and is recommended for adoption by the City Council. Staff recognizes there are specific issues that still need more discussion and research, including those described at the end of this discussion. However, the policy proposed with this report will help formalize the Citys goals for approaching EV technology and provide a general framework for moving forward to address specific issues. A. PUBLIC EV CHARGING A.1. Installing, Owning, and Operating Public EV Charging Stations While most EV charging is likely to take place at homes and businesses, there has been considerable interest by federal, state and regional entities to install publicly accessible charging infrastructure to enable and encourage mass adoption of EVs. (See Appendix A for a description of charging infrastructure.) There are two basic models for public charger infrastructure development. The first option is for the City to install and own EV chargers. Under this option the City would own the charging stations, pay for the electricity under established retail rates, manage the vendor services contract and collect revenue for use and upkeep of the charging stations. The City could competitively procure the charging hardware and the networked operations services separately or together. Currently the City owns and operates 7 EV Chargers, of which 5 are the newer type just installed in downtown Palo Alto parking garages. The second option is to seek interested vendors/suppliers to install, own, and operate the networked charging stations on City-owned property such as City streets, parking lots, and parking structures and provide revenue to the City. Under this option, supplier proposals will also be evaluated based on the royalty/rent the supplier is able to provide the City. Staff estimates suppliers would be willing to provide 5% to 10% of sales revenue to the City as rent. This rent/return can vary widely depending on the charger type and use, but is preliminarily estimated at $100 to $1,000 per charger per year. Such a private sector-owned infrastructure model is in the early stages of development. Regardless of the December 19, 2011 (ID # 2360) Page 4 of 9
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Citys policy regarding charging stations on City-owned property, businesses in Palo Alto also have and will probably continue to place charging stations on private property. A third (hybrid) model of the two options is one where the charging stations would initially be owned by a private sector entity (5 to 10 years) followed by a transfer of ownership to the City. Some grant money may be available for all of these options. Staff has prepared a Request for Information (RFI) to solicit interest and qualification statements from potential private sector partners who may be interested in building a privately owned or hybrid privatepublic EV charging station network in the City. In addition, the City is in the process of identifying parking management strategies in the Citys two main business districts, Downtown and California Avenue. The potential EV network partners will help the City account for more electric vehicle stations as part of its long-term parking management program. Private sector participation has the additional benefit of using private sector tax-equity funding available to finance the infrastructure. Whether publicly or privately owned, an adequate supply of electric vehicle charging stations will help the City to accommodate resident, commuter, and visitor needs while in Palo Alto. The recommended RFI to solicit private sector interest in development of a charging station network will likely focus around commercial districts such as Downtown, California Avenue, Town & Country, and the Midtown area, in addition to City-owned facilities. Policy # 1: Enable regional organizations and individuals to develop open-access EV charging infrastructure in the City and region by partnering with and/or leasing City-owned spaces to organizations and individuals who can install and manage EV charging stations consistent with the Citys parking plans.

Project #1: Release a RFI to gauge private sector interest in building an electric vehicle charging station infrastructure in Palo Alto and to estimate the revenue that could accrue to the City from these arrangements. Project Timeline: RFI expected to be issued by December 2011, and responses expected to be evaluated in early 2012. A.2. Cost Recovery versus Subsidization for City-owned Charging Stations The existing City-owned EV charging stations are currently available for free use. Staff recommends that they remain free to help encourage the growth of the electric vehicle industry for now, but to eventually levy a fee for use to cover the cost of providing the electricity and maintaining the charger. The five new City owned EV charging stations that were just installed in downtown Palo Alto, are equipped to levy a fee for use, however the remaining 2 older EV charging stations are not. There is no consistent regional model or cost structure. For instance the EV charging stations installed at Stanford Shopping Center are and will continue to be free for use and are not equipped to levy a fee for use, but a fee of $3 per hour applies for using the chargers installed at Stanford University. (See Appendix B for a description EV charging infrastructure plans in the Bay Area.) Policy #2: Charge a user fee on any City-owned charging stations where appropriate to cover the Citys costs to provide the service. December 19, 2011 (ID # 2360) Page 5 of 9
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Project #2: Develop a plan for implementing a cost of service model for EV charging stations owned by the City. Project Timeline: Staff will assess usage and cost of service over the next few months and develop a plan and cost structure, for Council for review. Staff may follow other regional leaders, such as San Francisco, and recommend levying EV charger use fees starting in 2013. B. PRIVATE CHARGING B.1. Maintaining Distribution System Integrity for all Customers Although staff does not anticipate wide-spread capacity demands on the distribution system due to EV charging in the short term, concentrated numbers of EVs could result in the eventual need to upgrade local transformers. Customers installing new chargers in their homes are required to obtain permits from the City. However, no permit is required for an EV owner who opts to charge using an existing home electrical outlet. In order to ensure adequate distribution system capacity to serve all electric utility customers, the City needs to know where EVs are being charged. To supplement the permitting process data, the City must find other ways to encourage EV owners to disclose information about the purchase of a new EV and related infrastructure. Policy #3: Encourage EV owners to inform the City of their ownership or local use of electric vehicles to better enable the City to appropriately plan for the EV infrastructure needs of the City and the region.

Project #3: Internal process to be developed to track all EV charging station permit applications as well as get regional EV ownership data. Staff will continue to investigate regional EV registry initiatives, as well as other opportunities to gather EV ownership data. Project Timeline: On-going B.2. Electricity Rates for EV Charging Localized capacity constraints on the distribution system caused by clusters of charging EVs can be mitigated by encouraging EVs to be charged at night, when most other electric loads are low. Because EV charging is somewhat discretionary, it makes sense to design retail electric rates that incent nighttime charging. This can be beneficial to the customer as well as to the grid, because lower nighttime electric rates will result in less expensive fuel for the vehicle. In addition, the marginal electric supply during the night tends to be less polluting than sources of electric supply during the day. Policy #4: Provide incentives for customers to charge EVs off-peak to reduce the adverse impact on the electrical grid and is more beneficial to the environment.

Project #4: Develop retail time-of-use electric vehicle charging rates, metering and related infrastructure to incent customers to charge their vehicles during off-peak hours through time of use rates. Project Timeline: Pilot EV time-of-use electric rate for residents is expected to be made available the summer of 2012. B.3. Permitting December 19, 2011 (ID # 2360) Page 6 of 9
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One major way that the City supports EV ownership is by having a streamlined permitting process for the installation of EV charge units that is as consistent with those in other jurisdictions throughout the region as possible. Residential customers who install the newer faster chargers on their properties and commercial customers who install charging stations for employee use all are required to obtain an Electrical Permit from the Building Division. A simple, expedited permit process makes owning and driving EVs in Palo Alto more attractive. State Senate Bill 703 (Kehoe) was introduced in the last legislative session and its intent was to streamline permitting processes for EV charging stations throughout the state. Although the legislation was tabled, Palo Alto is supportive of the basic premise of the bill, which is to minimize the time and expense required to obtain permits for EV charging stations. As a result, staff has worked to design and implement a permitting process that is as simple, quick and efficient as possible, while at the same time ensuring that applicable Electrical Code, Fire Code and Utility Department requirements are met. Policy #5: Provide a quick and efficient permitting and inspection process for the installation of residential and commercial EV charging stations to promote the use of EVs in Palo Alto, consistent with regional and state efforts aimed at creating infrastructure to support EVs. Development Center staff will continue to review, refine and simplify the permitting and inspection processes for EV charge units to the extent possible.

Project#5:

Project Timeline: Ongoing. B.4. Building Standards Palo Alto has been a leader in establishing Green Building standards and has adopted the voluntary measures for EV infrastructure that are contained in the California Green Building Standards Code (CALGreen), which became effective on January 1, 2011. These measures include providing EV infrastructure in new commercial buildings and those undergoing major renovations. While these measures are currently voluntary, staff is considering whether to recommend making them mandatory for certain projects. Also, the next Building Code adoption cycle in 2013 may include mandatory EV requirements for certain residential projects. Policy #6: Encourage builders and developers to meet or exceed voluntary CALGreen standards for EV infrastructure as a way to increase the availability of and accessibility to EV charging stations within the City.

Project #6: Planning staff will consider establishing mandatory requirements for incorporating EV infrastructure in residential and commercial development projects. Project Timeline: Concurrent with the next (2013) Building Code adoption cycle to be effective in January 2014. B. 5. Outreach to the Community to Enable EV Adoption Public education and outreach are cornerstones of widespread EV adoption. Education and outreach efforts will include everything from informing community members who are interested in EV ownership but do not know where to start, to explaining the positive impacts EV adoption could have on the Citys environment. Staff will work with regional entities to provide clear and consistent messages. December 19, 2011 (ID # 2360) Page 7 of 9
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Policy #7:

Provide public education and outreach about EVs to encourage widespread EV adoption.

Project #7: Staff will continue to furnish information on the City website as well as coordinate with regional EV groups in an effort to reach out to residential and commercial customers. Project Timeline: Ongoing Future discussion and implementation issues Staff recognizes that there are additional issues related to EVs and, in particular, charging stations that require further review. Staff will continue to work with the community and industry by: 1. Developing a standard for EV charging stations and way-finding signage 2. Assessing the options for incorporating EVs into the Citys fleet 3. Addressing the time limits and related parking fines for public EV parking spaces 4. Addressing any CO2 allowances associated with EV charging station installation that may be available to support the citys Greenhouse Gas emission reduction efforts These issues and others will continue to be a focus for the multi-departmental EV team. Resource Impact Implementation of this policy will require staff time, but could save time if the result is a simplified and clear process for implementation. There are, however, some costs of initial provision of electricity free of charge to EV users and installation costs for the charging stations. Policy Implications This policy will advance the Council priorities of Environmental Sustainability. Environmental Review Approval of this EV policy is not a project requiring review under the California Environmental Quality Act (CEQA). As staff develops or reviews individual projects or plans, CEQA will be considered and conducted as necessary. Appendices A. Description of EV Charging Infrastructure B. EV Charging Infrastructure Plans of other Cities in the Bay Area C. Proposed Electric Vehicle (EV) Infrastructure Policy

Attachments: a: Appendix A b: Appendix B c: Appendix C (DOC) (DOC) (DOC) (DOC)

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d: 10-18-11 P&S DRAFT EXCERPT

December 19, 2011 (ID # 2360)

Prepared By: Department Head: City Manager Approval:

Debra van Duynhoven, James Keene, City Manager ____________________________________ James Keene, City Manager

http://www.ci.berkeley.ca.us/uploadedFiles/Clerk/Level_3_-_City_Council/2011/06Jun/2011-0607_Item_15_Policy_for_Charging_of_Electric_Vehicles.pdf
ii

http://psrc.org/transportation/ev

iii

As estimated by Shiva Swaminathan. It is estimated that standard vehicles emit 1 lb of GHG emissions /mile. The average miles / year / vehicle is about 10,000 miles. To translate lbs into tons one needs to divide by 2200. 1 lb/mile x 10,000 miles x 1/2200lbs = 5 tons /year. The reduction due to conversion to EV estimated at ~3.5 tons/yr.
iv

As estimated by Shiva Swaminathan. This is potential savings is the difference between a standard gasoline vehicle and an EV. A gasoline vehicle emits 1 lb/mile and a vehicle using the standard electricity mix in Palo Alto rd would emit about 0.23 lbs/mile. This calculated by 1lb/kWh multiplied by 2/3 (to account for 33% RPS) and multiplied by 3 (because a standard EV can go 3 miles per 1 kWh).

December 19, 2011 (ID # 2360)

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Appendix A - Description of EV Charging Infrastructure The new generation of charging stations and networked charging infrastructure is still in its relative infancy. The model of swapping batteries espoused by the Palo Alto based company Better Places is yet to be widely adopted in the U.S. The charging stations marketed by Coulomb Technologies, AeroVironment, General Electric, Bosch, Better Places and numerous other entities envision charging pedestal type infrastructure, similar to parking meters, for public or curb-side charging. Charging stations are broken into 3 major types:
1. 2. 3.

While Level 1 and Level 2 chargers will be popular at homes, Level 2 and Level 3 charges may be more popular for public charging. Most of the Level 2 and Level 3 chargers come with wireless based networking capability. Though software and data collection standards have not been finalized, most of the chargers come with ability to record duration, energy usage patterns, electrical current/voltage, electrical energy usage, and customer ID if it is a magnetic card based subscription. Though there may be multiple subscription services by vendors, typically, a subscriber to one vendor service will be able charge his EV at another service providers charging station, but will likely pay more for the service. Though these charging devices are in their early stage deployment there is a robust market of suppliers and service providers in the market. There are also some interest from suppliers willing to install, maintain and own the charging infrastructure, but this business model is yet to be fully tested. Whether a complete City-owned network is deployed or a hybrid system implemented, the cost of providing electrical connection by the Utilities Department will be charged to the owner of the EV chargers (or say to a project account that will be funded from grants, and private sector funds) under established tariffs (cost pass through for each service order). The electricity supplied to the chargers will be priced based on established retail electric rates and collected by the utilities department. While the charger equipment cost is known with relative certainty as outlined above, the utility connection cost could vary widely depending on the location and proximity of sufficient electric services and could be as high as $20,000 in certain cases.

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Attachment: Appendix A (2360 : Electric Vehicle Infrastructure Policy)

Level 1 charger: the standard 120 volt electrical outlet at homes, but can take 10+ hours to charge an electrical vehicle Level 2 charger: is a 240 volt charger, similar to the outlet for an electric dryer, this type of a charger can cost $4,000+, but can charge a car in 6 to 8 hrs. Level 3 charger: is a 480 volt high powered charger than can charge an EV in 30 minutes, but costs $60,000+.

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Appendix B - EV Charging Infrastructure Plans of other Cities in the Bay Area 1. Many of the Bay Area Cities are installing chargers using grant funds at their public facilities (E.g. San Francisco, Redwood City, Los Altos Hills and Mountain View). 2. Most of the cities are currently providing charging service free of charge to EV owners. Los Altos Hills in the exception and is charging $5/hour for the service Some cities have publicly announced that although the EV chargers are free to use now, there will be eventually be a fee for use. . 3. Below is a map from Charge Point Network showing other publicly available charging stations close to Palo Alto.

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Attachment: Appendix B (2360 : Electric Vehicle Infrastructure Policy)

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Appendix C Proposed Policy

POLICY AND PROCEDURES 5-01/MGR First adopted in TBD, 2011 Revised TBD Electric Vehicle Infrastructure Policy POLICY STATEMENT The City recognizes that Electric Vehicles (EVs) have the potential to reduce the communitys GHG foot print considerably over the long term. Having a City policy to encourage EVs and to facilitate the building of a robust public charging infrastructure in Palo Alto and in the region is critical for the success of EVs in Palo Alto and the reduction of transportation-related GHG emissions. Therefore, the City establishes the following goals: Policy # 1: Enable organizations and individuals to develop open-access Electric Vehicle (EV) charging infrastructure in the City and region by partnering with and/or leasing Cityowned spaces to organizations and individuals who can install and manage EV charging stations consistent with the Citys parking plan. Policy #2: Charge a user fee on any City-owned charging stations may be appropriate to cover the Citys costs to provide the service. Policy #3: Encourage EV owners to inform the City of their ownership or local use of electric vehicles will better enable the City to appropriately plan for the EV infrastructure needs of the City and the region. Policy #4: Provide incentives for customers to charge EVs off-peak will reduce the adverse impact on the electrical grid and is more beneficial to the environment Policy #5: Provide a quick and efficient permitting and inspection process for the installation and construction of residential and commercial EV charging stations can promote the use of EVs and is consistent with regional and state efforts aimed at creating infrastructure to support EVs. Policy #6: Encourage local developers to meet or exceed voluntary CalGreen standards for EV charging station infrastructure will help expand the EV charging network within the City. Policy #7: Provide public education and outreach about EVs to encourage widespread EV adoption. NOTE: Questions and/or clarification of this policy should be directed to the City Managers Office
Attachment: Appendix C [Revision 1] (2360 : Electric Vehicle Infrastructure Policy) Packet Pg. 27

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DRAFT EXCERPT
City of Palo Alto Policy and Services Committee Meeting October 18, 2011
Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

Recommendation Regarding Electric Vehicle (EV) Infrastructure Policy Debra Van Duynhoven, Assistant to the City Manager for Sustainability, explained that the Electric Vehicle Infrastructure Policy was a multi-department effort between the Utilities Department, the Public Works Department, the Planning and Transportation Department, the Development Center, and the City Managers Office. The intention of the Policy was to define a common goal and strategy for Staff and to provide a clear statement to the public of the Citys support for an electric vehicle (EV) infrastructure. The key motivations behind the development of the Policy were: 1) Projected demand: Experts had anticipated there would be between 3,000 and 10,000 EVs in Palo Alto by 2020, 2) Climate Protection Plan: If projections were accurate, the Citys commute emissions could be reduced by between 4 and 13 percent, and the community-wide overall emissions could be reduced by between 1.5 and 5 percent, 3) Industry advancements: A new generation of EVs and EV charging stations were emerging. By 2012 there would be approximately 20 different brands of EVs and plug-in hybrid EVs, 4) Public charging infrastructure, 5) Permits for EV charger installations: The City currently received approximately 20 permit applications per month, a number which increased on a monthly basis, 6) Impact on the Citys electric distribution system: the Utilities Department had determined that the impact to the electrical distribution system would be minimal in the early years of implementation, 7) Government subsidies: The five most recently installed EV charger units had been funded through government subsidies from the Department of Energy and the Bay Area Air Quality Management District, and 8) Economic development. She presented a map of the five recently installed EV chargers, which had the capability to accept credit card payments. Current charging station locations within Palo Alto included Stanford Shopping Center, the Palo Alto Unified School District Main Office, City Libraries, the Creekside Inn, the Westin, Hewlett Packard, Tesla, and Better Place. The proposal sought to enable EV charging infrastructure development by partnering with and/or leasing City-owned spaces to organizations and individuals

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Council Member Burt inquired as to the basis of the projection that there would be between 3,000 to 10,000 EVs in the City by 2020. Ms. Van Duynhoven replied that the projection was based upon California Energy Commission estimates for the State of California. Council Member Burt asked if Staff was aware of how many private and public charging stations there were in the City. Ms. Van Duynhoven stated that until a few months ago the City had not been collecting that information. Council Member Burt asked whether a permit was previously required for installation of an EV charging station. Ms. Van Duynhoven replied that no permit was required if the installation of the charging station was done as a part of a building project. Staff was now keeping track of all EV charging station installations. Pamela Antil, Assistant City Manager, asked if Mrs. Van Duynhoven could provide an estimate of installations over the previous several months.

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Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

to manage in accordance with the Citys parking plans. Staff also proposed to cover the Citys costs through user fees. The older EV charger systems did not have the capability to allow the City to charge user fees, while all new installations would be credit card compatible. The City was not currently collecting a fee for EV charging, but planned to in the future. Staff had issued a Request for Information (RFI) to gauge private sector interest in building EV charging stations and estimate the potential for revenue to be gained from such arrangements. There had also been some public interest in the installation of residential curbside EV chargers and Staff was working to develop a standard policy whereby a resident could install a charger for public use. In an attempt to maintain the integrity of the electric distribution system for all customers, Staff would encourage residents to inform the City upon purchase of an EV and would provide incentives for off-peak charging. EV charging incentives would require the development of time-of-use electric rates. She explained that Staff planned to pursue the development of a quick and efficient permitting process, to encourage developers to build charging station infrastructure, and to provide education and outreach regarding EVs.

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Ms. Van Duynhoven estimated that there were approximately 100 stations. Council Member Burt asked whether the problem was that developers had previously taken out simple electrical permits for charging station installations, making it impossible to track.
Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

Ms. Van Duynhoven stated that was correct. Council Member Burt asked how many different charging types were needed to serve the new EV cars. Ms. Van Duynhoven stated that the J1772 was the standard for EV electrical connectors and was the type of charger that had been installed in the City Hall parking garage. Tesla was an outlier, and did not use the J1772. However, Tesla vehicles had the ability to plug into a regular electric outlet. Council Member Burt inquired as to the installation cost per EV charging station unit. Ms. Van Duynhoven replied that the cost varied greatly depending on the infrastructural requirements of the electrical outlets. The five most recently installed stations had cost approximately $22,000 to install. The station units had cost $5,000 each. All together, each station had cost approximately $10,000. Council Member Burt asked whether Staff anticipated any negative unforeseen consequences of the proposed policy. Ms. Van Duynhoven explained that they had explored ways in which Staff could avoid overburdening of the electric distribution system. The City had been working with a start-up business from Stanford University called AutoGrid. AutoGrid developed a web-based demand response system that would allow Staff to test the electricity usage messaging so that EV owners could avoid charging their vehicles during peak hours. The system would be tested on the five new chargers. Council Member Burt asked how the EV stations would impact parking for those without EV cars. He noted that those without EV cars would be frustrated to see empty spots designated for EVs when they were unable to find a parking spot.

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Ms. Van Duynhoven stated that the charging stations installed so far had been frequently utilized. Ms. Antil stated that Staff had also been working to find a solution to the problem of EVs remaining parked in charging station spots after they were through charging.
Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

Council Member Burt acknowledged that the program was still in its infancy and discussed issues that Denmark had encountered after the implementation of their EV program. He asked how long it took to charge an EV. Ms. Van Duynhoven replied that it would take anywhere from a half an hour to eight hours to charge an EV. The AutoGrid system helped the City to track that information. Council Member Burt asked whether EV owners were expected to leave EV charging station spots after the charge was complete. Ms. Van Duynhoven explained that EV owners could receive updates directly to their cellular phones when their vehicles had received full charge. She felt that most EV owners would move their vehicles at that time to make the space available for others. There were also cellular phone applications that would allow EV owners to see when a charging station was available in their area. Council Member Burt stated that initially EV owners might be disproportionally socially responsible, but that once there was between 3,000 and 10,000 EV owners in the City the likelihood that owners would move their cars would greatly decrease. Ms. Van Duynhoven replied that Staff had not yet fully explored enforcement of EV parking regulations or violation penalties. Council Member Burt asked whether it was Staffs intention to develop a list of potential issues that would require future resolution. Ms. Van Duynhoven explained that Staff had identified several unresolved issues related to EVs, including signage, assessment of fleet options, and parking time limits and related fines. Council Member Burt asked whether Staff had developed a list of those items.

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Ms. Van Duynhoven stated they had. Council Member Burt commented that other organizations who had implemented an EV program had likely encountered the same issues. He suggested Staff review the strategies of those who had already successfully implemented programs. He asked whether the Bay Area Climate Collaborative (BACC) had any implementation ideas that could benefit the City. Ms. Van Duynhoven stated that while they had instituted an EV program, the BACC took a more regional approach than the City would. She added that the Citys Parking Plan would address many of the anticipated EV parking issues. Council Member Burt recommended the development of a master list of concerns or potential issues that could be used by many cities to prevent redundant work. The City should not expend its resources defining problems and inventing solutions when the work had likely already been done. If the work had not been done elsewhere, and the City was instead on the cutting edge of that technology, then they should be identified as such. He observed that the City had no way of knowing how many EVs were owned within the City or how many were owned by those who worked in the City, but did not reside there. Ms. Van Duynhoven replied that the majority of EV charging was expected to occur at home. She felt that the City should focus on infrastructure for home charging. The City was a leader in EV charging infrastructure, as many other municipalities had not yet installed EV charging units. Council Member Burt inquired as to whether the City should urge local legislators to sponsor legislation to create an EV registry that could assist in keeping track of the number of EV owners within municipal boundaries. He stated that it would be difficult for municipalities to implement EV plans without a clear understanding of how many EVs there were and where they were located. Ms. Van Duynhoven replied that the Department of Motor Vehicles (DMV) was currently the only organization with that information. The DMV has stated that the information was private, but several regional organizations were still working to obtain the data. Council Member Burt commented that a legislative initiative could be more effective than asking the DMV for the information. It might be

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Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

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easier to obtain the information from the DMV by zip code rather than by owner name and location. Council Member Klein agreed that if the DMV was not willing to cooperate, than the City should request the introduction of new legislation. He emphasized that the City had no use for personal information and only needed to know the number of EVs within City limits. Ms. Van Duynhoven stated that she had not personally requested the information, and suggested that she investigate the issue further. Council Member Klein agreed. He noted that the on page three of the Staff Report 101 Alma Street should read 101 Lytton Avenue. Ms. Van Duynhoven agreed with the correction. Council Member Klein observed that proposed policy 1 on page five of the Staff Report referred to enabling charging infrastructure in the City and the region. He asked why the word region had been used. Ms. Van Duynhoven replied that it was best to take a regional approach to EV charging infrastructure because many of those using the charging stations were from outside the City. The newly installed charging units had a regional infrastructure, allowing users to view all available stations within the region. Council Member Klein expressed concern regarding the proposal to allow residents to install curbside charging stations. He felt that the proposal would have unforeseen planning implications and would violate the Citys practice of prohibiting commercial enterprises in residential neighborhoods. Ms. Van Duynhoven stated there had been a great deal of discussion regarding those issues. A trial test had been conducted by one local resident, who had installed a charging station in front of his house at no cost to the City. Council Member Klein commented that if the electricity was provided free of charge to users, people would migrate from all over to use the charging station. He added that neighbors would likely take issue with the influx of new traffic into the neighborhood. Ms. Antil stated that while the trial was interesting, it was not designed

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Council Member Klein expressed a desire to maintain the sanctity of the Citys neighborhoods and to avoid problems arising from exceptions to established policies. He was surprised that the City of Los Altos Hills charged $5 per hour for EV charging, as that would make it more expensive to charge an EV than to fill up a regular vehicle with a tank of gas. Ms. Van Duynhoven stated that she did not know how they had determined their fee schedule. Council Member Klein asked whether Staff had any indication of what the City would charge. Ms. Van Duynhoven replied that they did not. She hoped that fee setting could be a regional discussion, whereby local municipalities could agree on a fee schedule. Council Member Klein felt the fee should be set at considerably less than $5 per hour. He asked when Staff planned to begin collecting a fee for the charging stations that had already been installed. Ms. Van Duynhoven replied that a date had not been set. The City of San Francisco, who had installed 80 charging stations, recently announced that they would begin collecting fees in January 2013. Council Member Klein clarified that Staff intended to take a regional approach to developing the fee structure. Ms. Van Duynhoven stated that was correct. She maintained that it would be best if the Citys fees corresponded to those in neighboring municipalities. Council Member Klein asked whether it would be a Pacific Gas and Electric charge or a City of San Francisco charge.

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Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

in such a way as to be applicable to future City sanctioned installations. The trial was an example of Palo Altans creativity and interest in EVs. The charging unit had been removed at the request of the City, but the resident was hopeful that Staff would return with an alternative for residential EV charging. There also seemed to be a number of residents that had an interest in EVs, but were not willing to subsidize an EV charging program. As Palo Alto was at the forefront of EV infrastructure efforts, Staff had not been able to find established standards for how to handle those issues.

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Ms. Van Duynhoven responded that she did not have that information, but assured the Committee that Staff planned to collect a fee for EV charging. Council Member Klein asked whether Staff had coordinated their efforts with local automobile dealers. Ms. Van Duynhoven replied that Staff was sharing information with them. Council Member Klein felt the automobile dealers could offer some rough data regarding the percentage of their customers that lived in Palo Alto and their percentage of EV sales. He indicated he was very encouraged by Staffs progress. Arthur Keller stated he was not speaking in any official capacity and thanked Staff for their work on the issue. He discussed the different levels of EV charging and suggested that the City install a level three charging unit downtown. He felt that it was wise to coordinate with locals developers because it was much cheaper to install EV cables during the building process than after the project was complete. The most serious policy question regarding residential curbside EV charging stations was whether the parking spots in front of the stations would be dedicated for EV vehicles or open to all vehicles. Council Member Holman stated the City had no good way to regulate when people charged their EVs. She asked how the City could motivate EV owner to charge at night. Ms. Van Duynhoven explained other utilities had incentivized night charging through their rate structures. Shiva Swaminathan, Utilities Senior Resource Planner, explained the City would charge lower electric rates at night for those charging EVs. Council Member Holman asked whether the fee reduction would be significant enough to motivate users to charge their behaviors. Mr. Swaminathan explained that EVs could be programmed to begin charging at a specific time. For instance, an owner could set their EV to begin charging at 10:00 p.m. if that was when the reduced rate went into effect.
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Council Member Holman expressed concern regarding the aesthetics of residential curbside charging stations, stating they could potentially change the character of a neighborhood. She wished to avoid an outcome similar to that of the Citys backflow devices, which were both very visible and aesthetically displeasing. She asked what the curbside charging stations would look like.
Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

Ms. Van Duynhoven explained that the visual impacts of the residential EV curbside charging stations had been discussed at length, but that nothing had been decided. Council Member Holman clarified that she was concerned about the aesthetics of all EV charging stations, both residential and commercial. Ms. Van Duynhoven replied that Staff had not yet developed any aesthetic standards, but that they pursue that course of action upon direction of the Committee. Council Member Holman felt that the City should develop a policy outlining which EV charging models were visually acceptable and which were not. She wanted to avoid an unfavorable reaction from the public resulting from the Citys lack of consideration of the visual impacts of the project. Ms. Van Duynhoven agreed and stated that as Staff moved forward with the development of EV charging infrastructure standards they would ensure that any visual impacts were properly addressed. Chair Price inquired as to the future impacts to the Citys electric distribution system. Mr. Swaminathan replied that the City had sufficient feeder capacity to support commercial EV chargers. The City also had sufficient feeder capacity to support residential EV chargers, but the Utilities Department foresaw some issues with the transformers in residential neighborhoods. Each transformer, located atop electrical poles, serviced approximately five to ten homes. While charging, an EV represented the electrical capacity equivalent of one home. If there were clusters of EVs in a neighborhood that received electricity from one transformer, then the transformer would need to be upgraded. That was one reason why it was so important for the City to know the location of all EVs. Chair Price inquired as to the possibility of future state or federal

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funding opportunities for the project. Ms. Van Duynhoven stated that she had reason to believe that there would be additional future grant funding opportunities. Chair Price inquired as to the cost of an EV.
Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

Ms. Van Duynhoven explained the she thought the cost of an EV ranged from approximately $40,000 to $200,000. Mr. Keller commented that a Nissan Leaf started at approximately $35,000. Owners of EVs were eligible for federal incentives in the amount of $7,500 and state incentives in the amount of $2,500. Therefore, the net price of the Nissan Leaf was $22,000 to $25,000. Chair Price stated that she would like Staff to be a little more reticent in identifying potential projects within the Electric Vehicle Infrastructure Policy. She inquired as to whether any of the statewide city planning organizations, such as the League of California Cities, had compiled information regarding EV infrastructure development. She asked whether the City planned to issue a RFI. Ms. Van Duynhoven confirmed that the City had issued an RFI to EV charging station manufacturers in order to assist Staff in developing EV charging infrastructure. They still had approximately $25,000 in subsidies to devote to EV infrastructure, and had issued the RFI in order to determine the best EV charging model for the City and to identify potential private partnerships. Chair Price indicated she was interested in efforts to determine best practices with regards to EV infrastructure development. She asked whether Stanford Hospital had included EV charging stations in their plans for expansion. Mr. Keller did not know whether EV charging included in the expansion plans, but noted that stations in at least one of the parking structures added that Stanford charged $3.00 per hour for included the price of parking. stations had been there were already at the Hospital. He EV charging, which

Chair Price felt that the project was extremely ambitious and noted that the impact on Staff was not yet clear. She asked when they would have details regarding the Staff time and costs associated with the projects identified thus far.

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Ms. Van Duynhoven stated Staff was currently working on each of the projects identified in the EV Infrastructure Policy. They would require some additional time if the direction from the Committee was to fully detail each of the projects prior to Council presentation. She emphasized that the EV Infrastructure Policy was only a draft and that it was still a work in progress. Chair Price asked whether Staff had ordered the projects according to priority. Ms. Van Duynhoven replied they had not. MOTION: Council Member Klein moved, seconded by Council Member Price, that the Policy and Services Committee recommends the City Council adopt the Electric Vehicle Infrastructure as recommended by Staff. Council Member Klein stated he would like to see EV infrastructure develop quickly and he was pleased Palo Alto could be a leader in the field. He explained that unforeseeable issues would always accompany new technology, but that he was encouraged by Staffs enthusiasm for the project. Chair Price stated EVs were an important area of research and that the City needed to move forward, while recognizing that additional refinement would be necessary. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER: delete Project #2: Develop a standard and process by which a resident could install an EV charging unit for public use in their neighborhood on page five or eight in the EV Infrastructure Plan or direct Staff to develop a more critical criteria. AMENDMENT: Council Member Holman moved, seconded by Council Member Burt, to direct Staff to address aesthetic issues as part of the programs development. Council Member Holman felt that it was a good program and wanted to avoid public opposition based on aesthetics. Council Member Burt noted the Amendment asked Staff to address the aesthetic issues, but it did not stipulate the degree to which that would happen, nor did it prescribe an outcome.
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Council Member Holman agreed. Council Member Burt suggested that Staff organize a contest to design aesthetically pleasing EV charging stations. He stated he would be very interested in what creative minds could come up with and explained the contest would not need to include strict geographical borders. He indicated that the contest could provide an opportunity to turn the stations into aesthetic attributes. Council Member Holman felt the City had missed a similar opportunity when the green utility boxes were installed in City parking lots. Council Member Klein felt that the design of aesthetically pleasing devices was not an appropriate role for the City. He felt that the development of EV infrastructure would move very quickly in the region and did not want to see the Citys progress delayed because of aesthetic concerns. He noted that it was in the best interests of the EV manufacturers to design aesthetically pleasing units, and that government was not historically very good at identifying the best design. Council Member Holman stated the City did not need to come up with the ultimate design, but that they only had to develop a good and creative design. Palo Alto was a very progressive community, and they now had an opportunity to demonstrate that. Council Member Burt felt that the design of EV charging stations represented an opportunity for the City and that enhanced aesthetics could help promote the installation of charging stations rather than deter it. Chair Price expressed support for the amendment and agreed with Council Member Burt that the design of charging stations represented an opportunity. She believed the City could do a good job of improving charging station aesthetics and did not agree that it would necessarily cause a delay in implementation. AMENDMENT PASSED: 3-1, Klein no Council Member Burt stated the work plan needed to be prioritized because everything could not be accomplished at the same. He asked how information on EV charging locations would be provided to the public.

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Ms. Van Duynhoven explained that the locations and availability of the first five EV charging stations could be accessed by the public through a smart phone application and that the information would be available on the Citys website. She added that most EV owners were aware of the smart phone application.
Attachment: 10-18-11 P&S DRAFT EXCERPT (2360 : Electric Vehicle Infrastructure Policy)

Council Member Burt asked whether it took eight hours to charge an EV with the J1772 connection. Mr. Keller replied that the Nissan Leafs level-two charger was only 20 amps, which was the reason it took so long to charge. There were multiple charging networks available to provide EV owners information regarding the location and availability of EV charging stations. Council Member Burt inquired further into EV charging times. Mr. Keller stated they often took seven to eight hours to charge when fully depleted. Council Member Burt asserted that the project was potentially transformative, but that the City needed to take a smart approach. He urged Staff to complete a comprehensive and uncompromising review of the potential negative consequences of the project so that any issues could be anticipated and dealt with appropriately. He looked forward to receiving project updates. MOTION PASSED 4-0 Chair Price asked whether the Members of the Committee would like to see the Item presented to Council as part of the Consent Calendar portion of the Agenda. Council Member Klein stated that he would. Chair Price directed Staff to place the Item on the Consent Calendar.

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