AGENDA DATE: 6/12/2024
TITLE:
Title
Electric Vehicle Charging Fee Ordinance
BODY
SUBJECT/PROPOSAL/REQUEST: An Ordinance to Establish Fee Rates for County-Owned Electric Vehicle Charging Stations
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Wall, Rosenberg, Bessette, Stewart, Dumars, Strother, Mowry
PRESENTER (S): Cai Mowry
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Albemarle County’s Climate Action Plan target is to reduce community greenhouse gas emissions by 45% from 2008 levels by 2030 and to achieve carbon emission neutrality by 2050. Transportation emissions are estimated to account for 48% of the emissions in Albemarle County. The expansion of electric vehicle (EV) charging equipment to encourage the use of electric vehicles is essential to meeting the community’s carbon emission reduction goals.
In 2021, the County installed EV chargers in the County Office Building parking lot for use by the general public. The total project cost was $333,008, including grant funds and $100,000 of Board dedicated climate action funds. Since commissioning, the County has hosted approximately 8,000 unique drivers at the county-owned facilities, dispensing over 738 mega-watt-hours of electricity for an accumulated greenhouse gas emissions savings (GHG) of over 502 metric tons.
At the time of installation, state agencies and localities were not permitted to assess fees for electricity distribution. As a result, EV owners charge their vehicles at County charging stations free of charge. Virginia Code § 2.2-614.5 was subsequently amended to allow government agencies to operate EV charging stations and to charge for service at prevailing rates. Other jurisdictions, including Alexandria and Fairfax County, have already established EV charging fees. A draft ordinance to establish EV charging fees to recoup the County operating expenses associated with the EV chargers is provided as Attachment A.
STRATEGIC PLAN: Infrastructure & Placemaking - Invest in infrastructure and amenities that create connection, opportunity, and well-being.
DISCUSSION: The usage of our EV chargers has been increasing steadily. A review of charger data shows that usage has been rising by approximately 10% a month. Electricity fees currently cost the County roughly $5,000 monthly. Staff estimates that electricity fees could approach $8,000 per month in FY 25. A new lease contract is expected in late FY 26 that is expected to increase monthly operating expenses by an additional $4,500 ($54,000/yr).
Staff has prepared a draft ordinance (Attachment A), an EV Fee Methodology (Attachment B), and Additional Background (Attachment C) to outline the proposed development and implementation of an EV charging fee for the County EV chargers.
BUDGET IMPACT: The County’s provision of retail electric vehicle charging service to the public is expected to have little financial impact on the County. Revenue is expected to cover the variable costs of transaction fees and electricity, which will be returned to the General Fund.
RECOMMENDATION:
Recommendation
Staff recommends that after the public hearing, the Board adopt the attached ordinance allowing the County to charge a two-part fee for public use, effective July 1, 2024, for the charging of electric vehicles at County-owned charging stations, consisting of (1) a charge of $0.147 per kilowatt hour and (2) a dwell-time fee of $2.00 per hour, capped at $25.00 per session. The dwell time fee is designed to encourage users to move their EVs after their batteries are fully charged to allow maximum community utilization of the EV chargers.
ATTACHMENTS:
A - Proposed Ordinance
B - Electric Vehicle Fee Methodology
C - Additional Background & Discussion