REPORT TO COUNCIL
SUBJECT
Title
Action on a Proposed Electric Bicycle Rebate Pilot Program [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure and Sustainability]
Report
BACKGROUND
On September 24, 2019 Council requested Silicon Valley Power (SVP) to review the opportunity to provide an electric bicycles (ebike) rebate program. SVP staff researched the various restricted fund programs; the public benefits program (PBC), the low carbon fuel standard (LCFS) program, and the green-house-gas (GHG) reduction program to evaluate if all or parts of the programs can fund an ebike rebate program. The California Air Resources Board governs both the LCFS and GHG program spending. At this time they do not allow program dollars to be spent on electric transportation beyond electric cars, trucks and forklifts and infrastructure. However, they are considering making changes to their current guidelines to allow for greater equity and diversity in clean transportation in the future. The PBC funds are used for energy efficiency, renewable energy, and research and development projects and at this time is not eligible to be used for an ebike program.
DISCUSSION
Given the current shelter-in-place and economic climate, people are biking more for both transportation and exercise. SVP is proposing to create a pilot residential ebike rebate program to encourage the adoption of electric bicycles for commuting to work, shopping, going to school, visiting friends, etc. instead of commuting by car. Electric bicycles are less expensive than electric cars and do not require special infrastructure to charge making them ideal for a range of lifestyles and economic situations.
SVP is proposing to fund the pilot ebike program through the already adopted operating 2021 budget by redirecting a total of up to $15,000 of funds from community promotion for public events to specific ebike rebate program(s). The proposed program will use $10,000 toward a standard rebate program. The program will offer a 10 percent rebate off the purchase price of an ebike, capping the total rebate at $300. The additional $5,000 will be dedicated to low income qualified residents adding an additional rebate of $100 for ebikes that cost under $500 dollars and an additional rebate of $200 for ebikes that cost over $500. Due to limited funding amounts this rebate program will be offered per residential household based on their electric account. SVP plans to launch this rebate program once approved by the City Council. SVP staff will coordinate with local ebike and bicycle shops to create awareness about the coming rebate program.
If the pilot program is effective in promoting the purchase of electric bicycles and limitations on the use of LCFS, GHG, and/or PBC monies is removed then SVP would create a permanent program using other funding sources.
ENVIRONMENTAL REVIEW
This action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b (4)) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The total cost of the pilot program is $15,000 in FY 2020/21, and these funds are available in the existing Electric Utility Operating Fund.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
Authorize the City Manager to launch and make changes to the proposed Electric Bicycle Rebate Pilot Program as necessary, including adjusting rebate amounts, within the overall designated funding amount of $15,000.
Staff
Reviewed by: Manuel Pineda, Assistant City Manager/Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager