REPORT TO COUNCIL
SUBJECT
Title
Action on a Charging Station and Premises Agreement with EVgo Services LLC
Report
BACKGROUND
Expanding the availability of Electric Vehicle (EV) chargers and thus encouraging the adoption of Electric Vehicle transportation is a greenhouse gas emission reduction strategy that aligns with the City’s Climate Action Plan, Sustainability Pillar, and the intention of State Law SB 350.
In 2012, NRG Energy Inc (NRG) and the California Public Utility Commission (CPUC) settled outstanding legal issues related to the energy crisis of 2000/2001. As part of the settlement, NRG was required to invest $102.5 million to deploy EV charging infrastructure across the state and provide regular settlement reports to the CPUC on use of the money. NRG is compelled to install, own and operate the charging stations by no later than December 5, 2020. EVgo Services LLC (EVgo) was created to implement the charging infrastructure requirements of the settlement. EVgo is now an independent entity, provides quick charging to all vehicle types, and has grown to be the largest public fast charging network for EVs.
In July 2018, EVgo approached the City and proposed to install public EV fast charging stations on City of Santa Clara Right-of-Way (ROW) at no installation or operational cost to the City. Ideal locations include areas adjacent to shopping centers and restaurants or places where people spend at least one to three hours. The fast chargers that EVgo installs are capable to quick charge electric vehicles up to 75 miles in 30 minutes.
DISCUSSION
EVgo is proposing to install, own and operate six (6) 150KW quick chargers with eight (8) parking stalls at the corner of Anna Drive and McCormick Drive (within City Right-of-Way [ROW]) at the Santa Clara Town Centre for a period of ten years. The location is already in use as parking facilities (See Charging Station and Premise Agreement, Exhibit A Premises-Site Plan). EVgo will be responsible for obtaining metered electric service at the site.
Council approval of the Charging Station and Premises Agreement will enable EVgo to perform their due diligence with the neighboring owners and users of the Town Centre complex and start the permitting process with the City to move this project forward.
EVgo’s installation of fast chargers at a key location in the City will provide charging access to area residents, businesses, and visitors at no cost to the City. Fast charging is an amenity that has the potential to drive traffic to restaurants and shopping venues, increasing sales tax revenue to the City. EVgo will spend $200,000 to $300,000 to install and maintain these fast chargers for a proposed ten (10) year term using EVgo’s access to the State’s low carbon fuel credits, potential other grant opportunities, and the NRG settlement program. EVgo will be required to follow the City’s Encroachment Permit Process being responsible for payment of any fees and electricity use.
In the future the City would like to be able to accommodate additional spaces within the ROW and make the opportunity available to other providers. As part of this report, staff is also requesting authority for the City Manager to negotiate opportunities and approve agreements and related documents to install up to an additional 30 new EV charging stations. It expected that these 30 stations will provide capacity for a reasonable period of time. At the time additional stations are needed staff will go back to Council with a status update and request for additional authority. All the providers would need to meet the City’s requirements and complete appropriate outreach for any such installations in the ROW.
ENVIRONMENTAL REVIEW
The action being considered is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 “Existing Facilities” and 15303 “New Construction or Conversion of Small Structures” as the activity consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities mechanical equipment or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agencies determination.
FISCAL IMPACT
No capital expenditures will result from entering into this agreement. There are no known negative economic impacts. Additional sales of electricity from the electric utility may result if EV users choose this location within Santa Clara for charging rather than outside the City. EVgo will permit, construct, and provide for any and all necessary structures and/or equipment needed to provide the EV chargers. The activity will follow the regular City permitting process and requirements.
COORDINATION
This report has been coordinated with the City Attorney’s Office and Finance Department.
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> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to enter into the Charging Station and Premises Agreement with EVgo Services LLC; and
2. Delegate authority to the City Manager to negotiate opportunities and approve agreements and related documents to install up to an additional 30 new EV charging stations in public right of ways throughout the rest of the City.
Staff
Reviewed by: Manuel Pineda, Interim Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Charging Station and Premises Agreement