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Home My WebLink AboutPLN 19-18cry 4 DICKERING Report to Executive Committee Report Number: PLN 19-18 Date: June 18, 2018 From: Kyle Bentley Director, City Development & CBO Subject: Purchase of Electric Vehicles and Charging Stations File: D-7000-002 Recommendation: 1. That Council approve the Workplace Electric Vehicle Charging Incentive Program (WEVCIP) as an alternate funding source of $22,500.00 for the purchase of electric charging stations; 2. That Council authorize the Director, Finance & Treasurer to revise the source of funding from Municipal GHG Challenge Fund in the amount of $22,000.00 to Vehicle Replacement Reserve 7040; and 3. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: In November 2017, the City applied for the Municipal GHG Challenge Fund for the purchase of electrical vehicles and charging stations. A funding request of $116,600.00 was submitted to cover 50 percent of the eligible projects costs to purchase 2 all -electric vehicles, 2 plug-in hybrid sport utility vehicle (SUV) electric vehicles and 4 Level 2 electric charging stations to serve the City fleet. A Level 2 charger can charge a battery from empty to 80 percent in 4 hours. In March 2018, after Council approved the 2018 budget, the Province announced that the City's application was not successful. In January 2018, the Province of Ontario announced the Workplace Electric Vehicle Charging Incentive Program (WEVCIP). This incentive program is setup on a first come first served basis, and the City diligently applied as an alternative option to the Municipal GHG Challenge Fund to cover the electric charging stations. In May 2018, the Province approved the City's application for the WEVC1P to purchase electric charging stations for an amount of $22,500.00. Also, with the purchase of the electric vehicles, the City intends to apply for the Electric Vehicle Incentive Program (EVIP), which provides a government rebate of $7,000.00 for the plug-in hybrid electric vehicle and $14,000.00 for the all -electric vehicle. Therefore, the City would like to proceed with the purchase of 1 plug-in hybrid SUV electric vehicle, 1 all -electric vehicle, and 4 Level 2 electric charging stations. Additionally, there are vehicle costs and Greenhouse Gas (GHG) savings with fuel switching from gasoline powered vehicles to electric. Based on a typical 8 -year ownership of the vehicle, the electrification of the City fleet will save a total of $23,304.00 from fuel switching costs and a total GHG savings of 66,368 kg of CO2 for 1 plug-in hybrid and 1 all -electric vehicle. Also, these GHG savings support the City's Corporate Energy Management Plan (CEMP) GHG reduction targets. Report PLN 19-18 June 18, 2018 Subject: Purchase of Electric Vehicles and Charging Stations Page 2 Other benefits of electrification of the City fleet include low maintenance, reduced noise pollution, no tailpipe emissions and a visual reminder of the City's commitment to a low carbon future. If successful in the purchase of the electric vehicles, the City intends to track the cost, maintenance and GHG savings far a 12 -month period to provide actual savings. The purchase of electric vehicles and charging stations makes economic sense, and demonstrates the City's leadership in innovation and environmental sustainability. Financial Implications: Approved Source of Funds 2018 Capital Budget Description Account Code Source of Budget Actual Funds Midsize SUV 5220.1801.0000 Municipal GHG $22,500.00 $0.00 Replacement Challenge Grant Vehicle $22,500.00 $45,000.00 Replacement Reserve New Electric Vehicles (2)* 5612.1802.0000 Municipal GHG $45,000.00 $0.00 *Budgeted for 2 vehicles, Challenge Grant but only purchasing one. Vehicle $45,000.00 $45,000.00 Replacement Reserve Electric Vehicle Charging 5700.1807.000 Municipal GHG $22,000.00 $0.00 Stations — New Total Challenge Grant Vehicle $22,000.00 $22,000.00 Replacement Reserve WEVCIP Grant $0.00 $179,000.00 $22,500.00 $134,500.00 Net costs under approved funds $22,000.00 The funding for the electric vehicles and charging stations is from the Vehicle Replacement Reserve 7040. Also, the City has received approval for the WEVCIP for the amount of $22,500.00. The additional funds of $22,000.00 required will also be funded from the Vehicle Replacement Reserve 7040. The Director, Finance & Treasurer concurs with the use of these funds to cover the purchase of the electric vehicles and charging stations. Report PLN 19-18 June 18, 2018 Subject: Purchase of Electric Vehicles and Charging Stations Page 3 Additionally, the City intends to apply for the EVIP which provides a government rebate of $7,000.00 for each plug-in hybrid SUV electric vehicle and $14,000.00 for the all -electric vehicle. This incentive will be received upon successful purchase of the vehicles and proof of payment documentation. The incentives received from EVIP will be deposited back into the Vehicle Replacement Reserve 7040. 1. Background 1.1 Municipal GHG Challenge Fund Update In November 2017, the Province of Ontario announced the Municipal GHG Challenge Fund as part of Ontario's Climate Change Action Plan to address climate change, reduce Greenhouse Gas (GHG) emissions and transition to a low -carbon economy. The action plan and the cap and trade program form the backbone of Ontario's strategy to cut GHG emissions to 15 percent below 1990 levels by 2020, 37 percent by 2030, and 80 percent by 2050. Accordingly, the City submitted an application to receive funds to purchase electrical vehicles and charging stations. A funding request of $116,600.00 was made to cover 50 percent of the eligible projects costs to purchase 2 all -electric vehicles, 2 plug-in hybrid sport utility vehicle (SUV) electric vehicles and 4 Level 2 electric charging stations to serve the City fleet. The estimated total GHG reduction is 427,000 kg of CO2. The electrifying of the fleet would help reduce the City's Corporate Energy Management Plan (CEMP) GHG reduction targets. The application is also consistent with the City's practice of replacing existing conventional gas engine vehicles with more fuel-efficient and hybrid vehicles. In 2017, the City purchased 6 SUV's and 3 pick-up trucks with reduced engine sizes. In March 2018, the Province announced recipients of the awarded funding. Unfortunately, the City's application was not selected for the current round of funding. The Climate Change Action Plan is a 5 -year plan and there will be multiple rounds of the Municipal GHG Challenge Fund, pending the availability of carbon market proceeds. 1.2 Approval of Workplace Electric Vehicle Charging Incentive Program In January 2018, the Province of Ontario announced the Workplace Electric Vehicle Charging Incentive Program (WEVCIP). As part of the Climate Change Action Plan, the government is taking action to increase the number of electric vehicle (EV) charging opportunities in Ontario in an effort to accelerate the electrification of transportation. This incentive program is setup on a first come first serve basis, and the City diligently applied as alternative option to the Municipal GHG Challenge Fund to cover the costs of the electric charging stations component. In May 2018, the Province approved the City for the WEVCIP. Upon successful purchase and installation of the charging stations, the City is eligible to receive funds for the amount of $22,500.00 (see WEVCIP Notification of Approval, Attachment #1). Report PLN 19-18 June 18, 2018 Subject: Purchase of Electric Vehicles and Charging Stations Page 4 2. Discussion Although the City did not receive the Municipal GHG Challenge Fund for the purchase of electrical vehicles and charging stations, the City did receive approval for the WEVCIP. Also, the City is eligible to receive incentives from the Electric Vehicle Incentive Program (EVIP) after the purchase of the electric vehicles. Thus, staff would like to proceed with the purchase of 1 plug-in hybrid SUV electric vehicle, 1 all -electric vehicle, and 4 Level 2 electric charging stations. The purchase of the electric vehicles and charging stations are being made in accordance with Section 13 Cooperative Purchasing of the Purchasing Policy. Moreover, there are cost savings with fuel switching the City fleet from gasoline powered vehicles to electric, Based on a typical 8 -year ownership of the vehicle, the electric midsize SUV will save $7,488.00 and the Compact Sedan would save $15,818.00 from fuel switching costs. This totals $23,304.00 from fuel costs for 1 plug-in hybrid and 1 all -electric vehicle. Additionally, there are GHG savings from the electrification of the corporate fleet. Based on a typical 8 -year ownership, the electrification of the midsize SUV would save 22,424 kg of CO2 and the Compact Sedan would save 43,944 kg of CO2. This results in a total GHG savings of 66,368 kg of CO2 for 1 plug-in hybrid and 1 all -electric vehicle (see EV Cost & GHG Savings, Attachment #2). Also, these GHG savings support the City's CEMP GHG reduction targets. Other benefits of electrification of the City fleet include low maintenance, reduced noise pollution, no tailpipe emissions and a visual reminder of the City's commitment to a low carbon future. If successful in the purchase of the electric vehicles, the City plans on tracking the cost, maintenance and GHG savings for a 12 -month period to provide actual savings. Staff recommend the purchase of electric vehicles and charging stations as it makes economic sense and demonstrates the City's leadership in innovation and environmental sustainability. 3. Project Costs The total cost of the project is $179,500 for the purchase of electric vehicles, and charging stations. As per the 2018 Capital Budget, 50 percent of the funding for the electric vehicles and charging stations is from the Vehicle Replacement Reserve 7040. The City has received approval for the WEVCIP for the amount of $22,500.00. The difference in additional funds of $22,000.00 required will also be funded from the Vehicle Replacement Reserve 7040. Additionally, upon successful purchase of the electric vehicles, the City is eligible to receive $7,000.00 for the plug-in hybrid electric vehicle and $14,000.00 for the all -electric vehicle from the EVIP, which will be deposited back in to the Vehicle Replacement Reserve 7040. Report PLN 19-18 June 18, 2018 Subject: Purchase of Electric Vehicles and Charging Stations Page 5 Attachments: 1. WEVCIP Notification of Approval 2. EV Cost & GHG Savings Prepared By: Approved/Endorsed By: Abid Syed, P. Eng. Coordinator, Energy Management AS:Id Grant McGregor, MCIP, RPP Manager, Strategic Initiatives & Sustainability Kyle Bentley, P. Eng. Director, City Development & CBO Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevedel, P.Eng. Chief Administrative Officer 4, -2_018 171,4CHMEN7 # / TO I.r KIR) or PLA iC —l8 Syed, Abid From: Workplace Electric Vehicle Charging Incentive Program (MTO) <WEVCIP@ontario,ca> Sent: Wednesday, May 16, 2018 10:28 AM To: Syed, Abid Subject: WEVCIP Notification of Approval Attachments: Completion Report Template WEVCIP (2018-02-09).pdf; WEVCIP EFT FORM.PDF Notification of Approval Dear Abid Syed, Thank you for your interest in the Workplace Electric Vehicle Charging Incentive Program (WEVCIP), We are pleased to inform you that your application of 2/6/2018, with a Grants Ontario number of 2018-02-1-739160117 to install 3 charger(s) at 1 The Esplanade (the "Project") has been approved, and subject to completing your Project as described, and ensuring it meets the requirements set out in the WEVCIP Program Guide, your Project will be eligible for up to a maximum of $22500 in WEVCIP funding. Please remember that the terms and expressions defined in Appendix 1 to the Workplace Electric Vehicle Charging Incentive Program Guide apply to this Notification of Approval Letter. The Ministry would like to confirm that you have six months (180 days) from the approval date of 5/16/2018 to complete your project; this means that you have until 11/12/2018 to submit the required documentation to the Ministry of Transportation via email to WEVCIP a�7.ontario.ca. Hard copies submitted via mail or fax will not be accepted. If you do not comply, your approval and funding is rescinded. The documentation that must be submitted by 11/12/2018 includes a Completion Report to document your completion of the Project, which must include: • • A signed report indicating acceptance of and compliance with the WEVCIP terms and conditions (please see the attached "Completion Report" template); Site photos showing the installed charging stations identified in this letter, the required signage, and the site conditions; Electrical Safety Authority certificate of final inspection; Copies of documentation showing total Eligible Project Costs (including receipts and invoices), and final charging station purchase agreements or lease agreements (with confirmation of funds that have been paid for the Project); Once the Ministry has reviewed the documentation and confirmed compliance, and assuming all terms and conditions are met, will provide you with the applicable funding. Please fill out the bank account information in the attached Electronic Funds Transfer (EFT) form and send it back to us along with a void cheque by emailing WEVCIP@ontario.ca 1 ATTACHMENT / TO REPORT # PI_N is -i g If you change or are unable to complete your Project as described in your application, or in the event there are any material changes to the information contained in the application, please notify the Ministry as soon as possible by phoning 1-866-999-9018, or by emailinq WEVCIP@ontario.ca. Failure to notify the Ministry of any material changes to the information contained in the application may result in the suspension or revocation of this Notification of Approval, or the Ministry exercising any of its other rights or remedies. Sincerely, Iris Fawcett Manager Transportation Programs Office, Ministry of Transportation 2 EV Cost & G H G Savings Midsize SUV: Cost Savings Equivalent Gasoline SUV Plug -In Hybrid SUV Annual Cost to Drive* $2,457 $1,521 Cost of Ownership** $19,556 $12,168 Total Cost Savings - $7,488 Greenhouse Gas (CO)2Savings Equivalent Gasoline SW Plug -In Hybrid SUV Annus! Emissions of CO2 (kg)* 5,773 2,970 Total Emissions of CO2 (kg)** 46,184 23,760 Total Savings of CO2 (kg) - 22,424 Compact Sedan: Cost Savings Equivalent Gasoline Compact .Sedan All -Electric Compact Sedan Annual Cost to Drive* $2,457 $480 Cost of Ownership** $19,656 $3,840 Total Cost Savings - $15,816 Greenhouse Gas (CO2) Savings Equivalent Gasoline Compact .Sedan All -Electric Compact Sedan Annual Emissions of CO2 (kg)* 5,773 280 Total Emissions of CO2 (kg)** 46,184 2,240 Total Savings of CO2 (kg) - 43,944 ** Based on average annual driving distance of 20,000 km Based on typical 8 year vehicle ownership Source: https://www.plugndrive.ca